Info Tech
Qualcomm faces prospect of record antitrust fines in China
BEIJING – Qualcomm Inc, the world’s biggest cellphone chip maker, may be hit with a record fine exceeding $1 billion in a Chinese antitrust probe, raising the specter of harsh penalties for foreign firms facing an increasingly aggressive regulator.
China’s National Development and Reform Commission (NDRC) initiated an investigation into Qualcomm last year and is currently holding talks with the U.S. company, which this month said it was still in the dark about the basis of the scrutiny.
The probe and the potential fine – the amount of which could hinge on negotiations – come as the NDRC zooms in on information technology providers, especially companies that license patent technology for mobile devices and networks.
Industry experts say the NDRC, the government’s main economic planning body, is trying to lower domestic costs as China rolls out its faster 4G mobile networks this year.
“It is, in some ways, a game of chicken,” said Yee Wah Chin, a New York-based antitrust expert at law firm Ingram, Yuzek, Gainen, Carroll and Bertolotti.
“While the (fine) money may be very attractive to the NDRC, they would also be happy if Qualcomm were to make all sorts of commitments regarding its technology and the licensing of the technology,” she told Reuters.
San Diego-based Qualcomm, which is scheduled to report quarterly results later on Wednesday, is positioned to reap the vast majority of licensing fees for the chip sets used by handsets in China, the world’s biggest smartphone market. Chinese telecom firms may invest as much as 100 billion yuan ($16.4 billion) in equipment for 4G networks.
Under the anti-monopoly law, the NDRC can impose fines of between 1 and 10 percent of a company’s revenues for the previous year. Qualcomm earned $12.3 billion in China for its fiscal year ended September 29, or nearly half of its global sales.
Lawyers say the fine is likely to be extremely high if Qualcomm fails to make concessions in its talks with the NDRC.
“We intend to continue cooperating fully with the NDRC,” Qualcomm spokeswoman Christine Trimble said when asked about the probe.
In December, the head of the NDRC’s anti-price-fixing bureau told state media there was “substantial evidence” against Qualcomm in the antitrust probe. Details, however, remain sketchy.
INCREASING SCRUTINY
The Qualcomm probe is a prime example of the uncertainty foreign firms are grappling with as China’s regulators target key industries to shield consumers from practices that could lead to what they call “unreasonably” high prices.
It also shows the NDRC’s seriousness in using its antitrust rules. In 2011, the agency imposed one of its first major penalties against a foreign company, a $300,000 fine on Unilever Plc for violations of the pricing law.
The NDRC has also slapped Chinese and foreign companies with investigations and fines in the past year.
In August, the regulator fined six infant formula manufacturers, including Mead Johnson Nutrition Co, Danone and Fonterra, a record $110 million after a probe into price fixing and anti-competitive practices.
The anti-monopoly law provision does not specify whether the 10 percent ceiling for fines applies to global or domestic sales, or to a particular product line.
At the lowest legal threshold, the fines on Qualcomm could surpass those in the infant formula cases. Fines at the top of the range would put the Qualcomm case on par with major antitrust rulings in the United States and Europe.
“They (NDRC) keep as much discretion for the decision maker as possible,” said Peter Wang, a China-based antitrust expert with law firm Jones Day. “Technically it would appear they can’t go below one percent, though they have other ways to reduce the fines based on cooperation.”
MAJOR MARKET
Qualcomm is no stranger to substantial fines.
In 2009, South Korea’s Fair Trade Commission fined the company 273 billion won ($252 million), the agency’s biggest ever penalty against a single company, for abusing its dominant position in CDMA modem chips which were then used in handsets made by Samsung Electronics and LG Electronics.
Falling afoul of Chinese regulators would be painful for Qualcomm, which saw revenues in China more than double over the last two years. Revenues, which include domestic sales as well as licenses for devices assembled in China and then exported, rose to $12.3 billion in 2013 from $4.7 billion in 2011.
Shipments of 4G enabled smartphones, many of which use Qualcomm’s technology, are expected to increase by about a third to top half a billion units in Greater China in 2015, according to data firm Canalys, compared with the 385 million units shipped in 2013.
Qualcomm charges handset manufacturers differing royalty rates, which usually range from 1 to 6 percent of the wholesale price of a handset.
Some experts suggest the NDRC’s scrutiny of IT providers stems from its desire to lower domestic costs as China rolls out its 4G mobile networks.
Last year, the NDRC started an investigation of U.S. firm InterDigital Inc to assess antitrust complaints by Huawei Technologies Co related to technologies for wireless devices and networks.
Delaware-based InterDigital has ongoing legal proceedings with Huawei in the United States, Europe and China.
“They (NDRC) have particular markets in mind and they have particular views of what the prices should be in the market,” said New York-based lawyer Chin.
– REUTERS
In efforts at spicing up the 2023 ITREALMS E-Waste Dialogue, the management of ITREALMS Media has partnered with E-waste Producer Responsibility Organization of Nigeria (EPRON) membership organisations for a day-long collection scheme of small electronic waste on Friday, December 15, 2023.
The EPRON members aligning their partnership with 2023 ITREALMS E-Waste Dialogue are EL-AS Tech Enterprises Limited and WEEE Eco-Friendly.
ITREALMS’ day-long collection scheme is part of the commemoration of 2023 international E-Waste Day (IEWD) within the ITREALMS E-Waste Dialogue with the theme “You Can Recycle Anything with a plug, battery or cable” at Welcome Centre Hotels, International Airport Road, Lagos.
Revealing this collaboration, the Group Executive Editor, ITREALMS Media, the organisers of the 2023 ITREALMS E-Waste Dialogue, Sir. Remmy Nweke, urged mobile device enthusiasts to come along with their devices that have reached their end-of-life to the venue for proper disposition by professionals who would also be on grounds to address some topical issues.
The collection of small electronic wastes especially mobile phones and like-devices, would be carried out by EPRON member organisation, EL-AS Tech Enterprises Limited as facilitated by ITREALMS Media group as part of this year’s ITREALMS E-Waste Dialogue on Friday, December 15, he added.
He disclosed that the exercise would commence at Welcome Centre Hotel by 9am till close of work hours the same day.
Nweke pointed out that the collection of small e-waste items would include mobile phones, pointers mouse, earpieces, rechargeable torches, phone chargers, to name a few.
Further, he said, that this initiative has become time-serving because some people may have missed any other opportunity before now for the year-long campaign, hence this awareness on e-Waste has to be continuous, “ITREALMS came up with this scheme.”
Nweke beckoned on Nigerians, especially mobile phone users, to leverage the opportunity in disposing of their mobile devices they no longer use, of course in exchange for a voucher or gift item.
In her reaction to this year’s day-long small waste collection, EPRON Executive Secretary, Mrs. Ibukun Faluyi, described the initiative as commendable, expressing confidence it would intensify the collection of end-of-life devices for proper disposition.
Mrs. Faluyi, also urged Nigerians to take advantage of this day-long collection of small wastes courtesy of ITREALMS Media.
Recalling for instance that in October 2022, EPRON had partnered SLOT alongside some UN agencies for collection of small e-waste items in Lagos, including the United Nations Information Centres (UNIC), United Nations Industrial Development Organization (UNIDO), International Labour Organisation (ILO), Lagos Waste Management Authority (LAWMA) and Lagos State Environmental Protection Agency (LASEPA).
This is even as the Executive Vice Chairman of the Nigerian Communications Commission (NCC) Dr. Aminu Maida and Director-General, National Environmental Standards and Regulations Enforcement Agency (NESREA), Prof. Aliyu Jauro, would both lead speakers at the 2023 ITREALMS E-Waste Dialogue slated for this Friday, December 15, in Lagos.
Today, September 12, the tech corporation Apple will introduce the iPhone 15, their newest iPhone model.
According to a Forbes story, this model, which will be introduced at the company’s “Wanderlust” event in Cupertino, California, will be available in four variations: the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.
Here are five things you should know about the new iPhone 15 model.
1. The new model is made of titaniu, not stainless steel as some other Apple smartphone models, Senior research analyst at DIGITIMES, Luke Lin reports.
2. The Pro Max model will feature double the optical zoom on the iPhone 14 as it comes with a newly-introduced ‘periscope lens upgrade, performing 5-6x optical zoom.’
3. The Pro models will carry an A17 bionic chip expected to make it perform faster.
4. The iPhone 15 model will feature a USB-C charging port, the same port featured on some Android phone models.
5. Due to its titanium shell, the new model is anticipated to be more expensive to purchase. The following is the speculated price list, as reported by Forbes:
The iPhone 15 starts at $799, the iPhone 15 Plus at $899, the iPhone 15 Pro at $1,099 ($100 increase), and the iPhone 15 Pro Max at $1,299 ($200 increase).
In an effort to reduce the exorbitant cost of Premium Motor Spirit, better known as petrol, the Infrastructure Bank Plc announced its collaboration with FEMADEC Group on Monday to offer 500 buses powered by autogas (Compressed Natural Gas).
Partners in the agreement claimed that the project was created to provide citizens with dependable, affordable, and environmentally friendly travel options, taking into account the negative effects of the nationwide increase in PMS costs.
Under Decree No. 51 of the Federal Republic of Nigeria’s 1992 Constitution, the Infrastructure Bank, originally known as the Urban Development Bank of Nigeria Plc, was founded in 1992 to promote the quick development of infrastructure throughout the nation.
In a statement issued in Abuja on its partnership with FEMADEC, the bank said, “The preliminary offer extended by TIB lays a solid foundation for the expansion of FEMADEC Group’s CNG bus fleet.
“With plans to introduce 500 CNG buses within the next five years, commencing with an initial batch of 50 buses in the forthcoming year, this proposal stands poised to instigate significant change.
“The acceptance of this proposition by FEMADEC Group, notably championed by Fola Akinnola, the Group Chief Executive Officer, is a testament to their zeal and dedication to this alliance.”
The bank described the partnership as a “pivotal endeavour that is primed to redefine Nigeria’s public transportation landscape, offering dependable, cost-effective, and ecologically conscious travel alternatives for citizens, while harmonising with the nation’s broader sustainability ambitions.”
“This partnership represents a remarkable stride towards a more ecologically aware future for Nigeria’s transportation sector, highlighting the shared commitment of both TIB and FEMADEC Group to sustainable advancement and progress.”
It said FEMADEC Group’s strides in operating Compressed Natural Gas buses, including the existing fleet of 20 CNG buses under LAMATA, underscored their unwavering dedication to ecologically sound solutions, a commitment predating the fuel subsidy removal.
“Their leadership within the CNG value chain is undeniable, and the new alliance with TIB underscores their foresight.
“This partnership seamlessly aligns with TIB’s sustainability objectives, echoing their resolute endorsement of the government’s net-zero and climate change agenda.
“The bank’s aspiration to champion Nigeria’s infrastructure progress is evident in its endorsement of pivotal initiatives like this, yielding expansive positive impacts on both the environment and society,” the bank stated.
The bank added that it would continue to make a significant contribution to the country’s growth as a leading financial institution committed to advancing effective and long-lasting infrastructure projects.
Entertainment Made Africa Look Good Despite Bad Leaders — Davido
NECO Expands Global Footprints, Accredits Niger, Equatorial Guinea Schools
Harry Kane Hits Back At Critics With Historic Hat-Trick For Bayern Munich
Angry Mob Burns Two Revenue Touts Alive After Fatal Accident In Onitsha
Ex-UN Envoy Warns Of New Cold War Threatening Africa’s Unity
EPL Confirms 2025/26 Season Dates, Introduces Player Welfare Measures
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
