Is Qualcomm In Trouble?

Qualcomm’s activities in China may lead to regulatory penalties for the chip vendor, this time from the U.S. Securities and Exchange Commission over bribery allegations.

The company is currently facing an anti-monopoly probe from Chinese authorities for allegedly overcharging clients. Qualcomm  has also said that the SEC may also consider penalizing the company, as part of an anti-corruption investigation.

The SEC’s Los Angeles Regional Office has made a preliminary decision to recommend that the SEC take action against Qualcomm for violating anti-bribery controls, the company said in its second quarter report. The accusations involve Qualcomm offering benefits to “individuals associated with Chinese state-owned companies or agencies,” the report added.

Both the SEC and the U.S. Department of Justice have been probing the company over alleged violations of the nation’s Foreign Corrupt Practices Act.

In cooperation with those official investigations, Qualcomm said it’s found instances of preferential hiring, and giving gifts and other benefits to “several individuals” with China’s state-owned companies. The gifts and benefits amounted to less than US$250,000 in value.

If the SEC takes action against Qualcomm, penalties could include giving up profits, facing injunctions, and other monetary penalties, the company said. Earlier this month, Qualcomm filed a submission with the U.S. regulator, countering any claims of wrongdoing.

Qualcomm is facing the investigations at a time when China is increasingly become a bigger part of its business. The nation is the world’s largest smartphone market, and more Chinese device manufacturers are expanding globally.

Last year, however, Chinese regulators began investigating Qualcomm due to complaints from industry groups. The company was allegedly abusing its market position and charging higher fees for its patent licensing business. In November, Chinese authorities conducted two surprise raids of Qualcomm offices in China for documents.

Chinese regulators could decide to penalize Qualcomm by confiscating financial gains made, and even imposing a fine of 1 to 10 percent on its revenues for the prior year, the company said in its quarterly report.

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Sony Hacked Again

More than 2000 users of Sony Ericsson’s Canadian Website are impacted by the latest hack attack to hit a battle worn Sony. Sony Ericsson is joint mobile phone venture between Sony and Ericsson. According to Sony hackers made off with e-mail addresses, passwords and phone numbers–but no credit card details. Sony has now shut down the affected site. Around 1000 of the stolen records from the Sony Canadian Website are already online, posted by Idahc, a “Lebanese grey-hat hacker”.

“Sony Ericsson’s Website in Canada, which advertises its products, has been hacked, affecting 2000 people,” a Sony spokesperson told AFP. “Their personal information was posted on a Website called The Hacker News. The information includes registered names, email addresses and encrypted passwords. But it does not include credit card information.”

“Sony Ericsson has disabled this e-commerce Website,” Sony detailed to IDG News. “We can confirm that this is a standalone website and it is not connected to Sony Ericsson servers.” For security, Sony has shut down the Canadian Sony Ericsson eShop page, which currently reads: “D’oh! The page you’re looking for has gone walkabout. Sorry.”

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