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First, there are two sides to every story. And QCOM is already facing regulatory heat in the USA. Second, QCOM has already been fined similar amounts for simil
by totalZero 9y ago
First, there are two sides to every story. And QCOM is already facing regulatory heat in the USA.
Second, QCOM has already been fined similar amounts for similar behavior in China and Korea. Any regulatory action by the USA has to keep in mind the ramifications of subsequent such action by foreign governments. That is to say, there is an economic incentive to let QCOM keep bullying manufacturers, because they are a US company in a largely international market.
Personally I think AVGO is nuts for wanting to buy this company. Without their bullying behavior in the licensing sphere, QCOM would be worth a fraction of its current price. They are majorly vulnerable here -- take a look at any regulatory filing from the past few years and you'll see that the lion's share of their profit comes from licensing.