China stops investigation into IDC monopolistic practices

China stops investigation into IDC monopolistic practices


China's National Development and Reform Commission (NDRC) announced Thursday an end to a monopoly investigation of InterDigital Communications (IDC), a U.S.wireless technology developer.

The decision came after IDC reconciled with Chinese tech firms and agreed to start patent negotiations.

Analysts explained that IDC's commitment will help it avoid severe punishment from China's antitrust authorities, and will cut 500 million yuan (81.09 million U.S. dollars) charged toward Chinese manufacturers.

Xu Kunlin, head of the commission's bureau of price supervision and monopolies, said that IDC had promised to stop discriminatory charges and provide more free options for Chinese firms.

IDC owns many crucial patents in wireless telecommunications, and most telecom device manufacturers should get IDC permission before production or sales.

The NDRC launched the investigation last June when IDC charged Chinese tech firms, like Huawei and ZTE, patent fees many times higher than those required by Apple, Samsung and Nokia.

IDC was also suspected of filing a "337 survey" to the United States International Trade Commission in order to force Chinese firms accept IDC's offers, according to the NDRC.

The NDRC conducted inquiries into IDC officials last July and in January of this year.

(Source: Xinhua)

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