In the news: Qualcomm antitrust investigation, international firms move inland and SPC hears first AML case
November 28, 2013 | BY
clpstaff &clp articles &The NDRC has launched an investigation into wireless technology company Qualcomm. International law firms are turning to China's regions and the Qihoo 360 v Tencent case goes before the SPC
NDRC launches investigation into Qualcomm
Qualcomm disclosed the investigation on Monday. The digital wireless telecommunications company said the investigation involved the PRC Anti-monopoly Law (中华人民共和国反垄断法), but it was not aware of any charges from the regulators that it had broken the law. Local media had reported that the NDRC would broaden its investigations to cover six new industries, including telecommunications, on Monday. China accounts for more than 49% of Qualcomm's sales in its latest fiscal year.
It does not come as a shock that the NDRC has chosen to investigate Qualcomm given the series of high-profile investigations this year. There are very few details but the Commission has the power to investigation monopolistic behaviour related to price-fixing and price manipulation. The NDRC may have received a tip-off which led them to investigate or they may be trying to scare Qualcomm because of its control of IP in wireless standards. It will be interesting to see what exactly the NDRC are investigating as more details are released.
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International Law Firms go inland
The Asian Lawyer ran a story this week on how international firms are looking to second-tier cities like Chongqing and Shenzhen to set up office. British firm Clyde & Co announced it was setting up office in Chongqing earlier this month through a joint venture with a local firm. Beijing and Shanghai have long been the pillars for mainland offices for some of the world's largest international firms. However, some firms like Stephenson Harwood got ahead of the game by opening a Guangzhou office back in 1994.
It is not surprising that international firms are looking to China's regions to expand. Shanghai and Beijing have lost some of their competitiveness in recent years. This is due to a range of factors such as cost, space and the government's push to develop service sectors in these cities. The Catalogue for Foreign Investment in the Dominant Industries of the Central and Western Regions (国家发展和改革委员会、商务部中西部地区外商投资优势产业目录) was revised earlier this year in May and encourages some previously restricted areas of investment. China's regions are attractive and booming – more firms will likely make the move as they seek new opportunities and to be closer to existing clients.
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This case has been widely covered in the media and commented on by leading experts. There is a sense of excitement as it goes before the SPC as lower-instance courts are unfamiliar with the country's five-year old Anti-monopoly Law. Qi Fang from Fangda Partners wrote in a previous article for China Law & Practice on the limitations of the SSNIP test in abuse of dominance cases. This is one of the key issues the judge identified in the hearing. The hearing was also broadcast live on television, which shows that the Court wants to set an example with this case.
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