Reuters: EU might join China in launching Qualcomm probe

|About: Qualcomm Inc. (QCOM)|By:, SA News Editor

Reuters reports EU antitrust regulators might launch a Qualcomm (QCOM -0.3%) probe following a complaint from Nvidia's Icera 4G baseband chip unit. One source says a case may be opened after this summer.

The report arrives amid signs of progress in Qualcomm's ongoing dispute with Chinese regulators. Authorities recently suggested Qualcomm has shown a willingness to improve its pricing (i.e. charge lower royalty rates) to end the dispute.

Cowen's Timothy Arcuri thinks accepting a lower rate is an acceptable compromise, given Qualcomm's recent Chinese issues. "QCOM would be better off to cede major swaths of royalties in China rather than jeopardize existing cash flows."