China fines Qualcomm $975 million penalty for violating anti-monopoly laws

Markets Associated Press

Qualcomm has agreed to pay $975 million to China after the government found that the chipmaker violated that country's anti-monopoly laws.

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The company said Monday that the fine will reduce its earnings for the fiscal year ending Sept. 27.

Qualcomm now forecasts earnings per share between $3.56 and $3.76, down from its previous estimate of $4.04 to $4.34. Adjusted earnings will top its expectations, however.

The company also agreed to make several changes to its licensing practices in China.

Qualcomm says it will offer licenses to its current 3G and 4G Chinese patents separately from licenses to its other patents.

It also will give existing licensees in China an opportunity to adopt the new terms for sales of branded devices for use in China going back to Jan. 1.