Qualcomm is apparently set to pay a fine of $1 billion to end a probe by the Chinese authorities into anti-competitive practices, after the two parties made “significant progress” during talks last week.
According to Reuters, the deal, which may also see Qualcomm cut its royalty rates in China by around a third, could be announced as soon as today.
The investigation by China’s National Development and Reform Commission (NDRC) began late in 2013, which has led to a prolonged negotiation between the two parties.
Earlier this year, Derek Aberle, president of the chipmaker, said that reaching a settlement was “one of the highest priorities” for the management team.
Qualcomm has also said that some companies in China are not fully complying with contractual obligations to report sales of licensed products, while the debate with NDRC was ongoing – leading to uncertainty over its business in this important market.
However, it also managed to resolve a dispute with one company in the country recently.