BEIJING—China's nearly $ 1 billion fine against Qualcomm Inc. marks one of its biggest moves yet to enforce antitrust laws that are having an increasing impact on business around the world.
Qualcomm on Monday said it would pay $ 975 million to end a Chinese probe into the way it sells chips and licenses its technology to Chinese companies. The settlement includes changes to its licensing practices that will reduce the amount it takes in from royalties for Chinese phones that depend on its technology.
Chinese officials weren't immediately available for comment, and it have yet to disclose details of its thinking behind the terms.
Jordan Powell, China Foreign Affairs University international law professor, said before the decision was disclosed that the case could blaze a trail for more decisions by China on whether foreign companies are playing fairly in the country. "You might see more of these come up."
In general remarks at a Lunar New Year's reception on Monday, Lu Wei, China's chief Internet censor said government regulators would ensure foreign companies don't infringe on national interests and consumer rights.
"China's open policy will not change," Mr. Lu said. "We welcome Internet companies from all countries to come to China to develop and to invest as long as they respect China's laws and don't harm China's national interests and the interests of Chinese consumers."
China has been increasingly flexing its regulatory muscle in antitrust matters over the past two years. It has launched investigations into alleged violations of pricing and business-practice laws in a variety of industries ranging from technology to cars and baby formula. China's State Administration for Industry and Commerce is probing how Microsoft Corp. prices its software—the Redmond, Wash., company said it is cooperating—and Chinese authorities last year fined GlaxoSmithKline nearly £300 million over allegations of bribery there.
Last year it also blocked an alliance of three European-based shipping companies, citing the control they would have over vital shipping lanes. Also last year, the major miners that became Glencore Xstrata PLC agreed to sell a major Peruvian copper mine to Chinese buyers after Chinese regulators made divestment of the mine a condition to their combination.
The tougher stance has drawn complaints from both U.S. and European business groups. Speaking at a gathering of world leaders for the Asia Pacific Economic Cooperation forum in October, U.S. President Barack Obama said "foreign companies must be treated fairly so they can compete fairly with Chinese companies."
Chinese officials dispute the accusations that foreign companies are singled out. They say Chinese companies have been primarily the focus of China's antitrust push, pointing to probes into cement makers and brewers of the country's fiery local liquor, called baijiu. They also say that China's targets, including Qualcomm, Microsoft and global auto-parts makers, have been subject to antitrust investigations in other countries.
The increasing emphasis comes amid China's emphasis on nurturing Chinese companies that can compete abroad. Qualcomm's chips are used by Chinese companies such as Huawei Technologies Co. and ZTE Corp. that have ambitions to create high-end consumer smartphone brands that can compete internationally with the likes of Apple Inc. and Samsung Electronics Co.
China also hopes to nurture a consumer culture as part of an effort to diversify growth away from its traditional reliance on property development and big infrastructure projects. Looking out for consumers by keeping Chinese products competitive is one way to get them to spend more consistently.
Write to Carlos Tejada at carlos.tejada@wsj.com and Eva Dou at eva.dou@wsj.com
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