SAN DIEGO—Japanese authorities may be the next to look into Qualcomm Inc.’s business practices.
The chipmaker said it has been notified by the Japan Fair Trade Commission that the agency may investigate its licensing and chip business practices in Japan. The JFTC didn’t disclose any specific complaint, Qualcomm said, or reveal the timing of any potential investigation.
Qualcomm President Steve Altman said the company will cooperate with any investigation “to establish that all of (our) activities in Japan are lawful and foster competition.”
Qualcomm’s business practices have increasingly come under scrutiny in recent months as regulatory agencies and competitors have complained of alleged unfair business practices. The European Commission is looking into the company after a half-dozen companies accused Qualcomm of “anti-competitive conduct;” Korean regulators raided the company’s offices earlier this year in response to similar complaints.
Shares of Qualcomm tumbled $1.05, or 3 percent, to $35.23 following the news, but UBS Investment Research warned investors not to overreact.
“Given the number of complaints against Qualcomm … we are not surprised that another group has decided to ‘join the party,’” the firm stated in a research note. “While this announcement will be viewed negatively, we note this is not an investigation and do not think any meaningful conclusion can be drawn at this point.”
