South Korean regulators have charged Qualcomm Inc. with unfair trade practices in a case related to the San Diego-based chipmaker’s long running dispute with Irvine’s Broadcom Corp.
The Korean Fair Trade Commission made the allegations about the legality of Qualcom’s business practices, including rebates and discounts for its customers, according to a Reuters report.
The allegations stem from complaints from four companies, including Broadcom, which has accused Qualcomm of violating South Korean antitrust regulations.
Broadcom and Qualcomm have been fighting in court and before trade commissions since 2005.
Broadcom accuses Qualcomm of unfair business practices, discriminatory licensing and violation of industry standards by concealing its patents.
Behind the dispute is Broadcom’s bid to win more business supplying chips to makers of cell phones. Right now, it’s a small cell phone chip player behind Qualcomm and Texas Instruments Inc.
The South Korea dispute is important since the country is home to Samsung Electronics Co. and LG Electronics Inc., two of the largest cell phone makers.
In October, Samsung and LG won a lifting of a ban on exporting phones with Qualcomm chips that was won by Broadcom.
In 2007, the U.S. International Trade Commission, a federal trade watchdog, ruled the Qualcomm chips infringed on Broadcom’s patent and ordered the ban blocking imports.
A U.S. Court of Appeals late last year said the ruling went too far since Samsung and LG weren’t named in Broadcom’s complaint.
In South Korea, Qualcomm said in a statement to Reuters it “believes its actions have been lawful and over the next several months plans to submit its response to the allegations.”
Companies found to violate South Korean business regulations can be fined and ordered to change their business practices.
Qualcomm also is under investigation by the European Commission in Brussels for alleged anti-competitive behavior.
