Shares of San Diego-based Qualcomm fell more than 9 percent on Wall Street following news that South Korean authorities are investigating the wireless communications company’s lucrative patent-licensing business.
The company’s stock closed at $48 in New York on Wednesday, down $4.98 or 9.4 percent from it’s Tuesday close of $52.98. Its now trading barely above its 52-week low of $47.52.
Late Tuesday, Qualcomm confirmed the investigation by the Korea Fair Trade Commission, but said the allegations were “not supported by the facts and are a serious misapplication of law.” The company said it would “vigorously defend” itself.
“Our patent licensing practices, which we and other patent owners have maintained for almost two decades, and which have facilitated the growth of the mobile communications industry in Korea and elsewhere, are lawful and pro-competitive,” Qualcomm said.
Qualcomm said the Korean commission’s staff-generated “Case Examiner’s Report” begins a process under which Qualcomm can respond to the allegations and defend itself.
The company has battled antitrust cases in multiple countries, notably China, where it recently reached a settlement.
