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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FTC Pushes For Security Standards

Despite growing resentment from companies and powerful industry groups, the Federal Trade Commission continues to insist that it wants to be the nation’s enforcer of data security standards.

The FTC, over the past years, has gone after companies that have suffered data breaches, citing the authority granted to it under a section of the FTC Act that prohibits “unfair” and “deceptive” trade practices. The FTC extracted stiff penalties from some companies by arguing that their failure to properly protect customer data represented an unfair and deceptive trade practice.

On Thursday, FTC Chairwoman Edith Ramirez called for legislation that would bestow the agency with more formal authority to go after breached entities.

“I’d like to see FTC be the enforcer,” Law360 quoted Ramirez as saying at a privacy event organized by the National Consumers League in Washington. “If you have FTC enforcement along with state concurrent jurisdiction to enforce, I think that would be an absolute benefit, and I think it’s something we’ve continued to push for.”

According to Ramirez, the FTC supports a federal data-breach notification law that would also give it the authority to penalize companies for data breaches. In separate comments at the same event, FTC counsel Betsy Broder reportedly noted that the FTC’s enforcement actions stem from the continuing failure of some companies to adequately protect data in their custody.

“FTC keeps bringing data security cases because companies keep neglecting to employ the most reasonable off-the-shelf, commonly available security measures for their systems,” Law360 quoted Broder as saying.

An FTC spokeswoman was unable to immediately confirm the comments made by Ramirez and Broder but said the sentiments expressed in the Law360 story accurately describe the FTC’s position on enforcement authority.

The comments by the senior officials come amid heightening protests against what some see as the FTC overstepping its authority by going after companies that have suffered data breaches.

Over the past several years, the agency has filed complaints against dozens of companies and extracted costly settlements from many of them for data breaches. In 2006 for instance, the FTC imposed a $10 million fine on data aggregator ChoicePoint, and more recently, online gaming company RockYou paid the agency $250,000 to settle data breach related charges.

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Is Alcatel-Lucent Running Low?

Alcatel-Lucent, which was the combination of Lucent and French network equipment provider Alcatel, has been going through a tough few years as it battles against rivals such as Huawei, Nokia Siemens and Ericsson. Now the firm has reportedly looked to investment bank Goldman Sachs for a loan in return for the firm putting up some of its assets as collateral.

According to Bloomberg’s sources, the amount of the loan has yet to be disclosed and the firm even mooted the prospect of selling assets including its undersea cable and enterprise businesses. The sources said discussions about the sale were still at an early stage and claimed neither asset could fetch more than €1bn, highlighting just how far the firm has fallen in recent years.

Alcatel-Lucent needs to sort out its balance sheet because the firm needs to service more than €2bn debt in the next three years. The company might have to look at its vast patents portfolio, though whether it might sell them or merely license them is not clear at this stage.

With Huawei and ZTE winning business away from European vendors such as Alcatel-Lucent and Nokia Siemens, it is not surprising that the firm is having to take drastic action in order to keep the lights on. However for Alcatel-Lucent it is a embarrassing situation for the firm.

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GreenPeace Still After Apple

A Greenpeace study has revealed that Indian outsourcing firm Wipro made the biggest strides to becoming a greener company this year, while Apple continued to lag behind.

Greenpeace’s “Guide to Greener Electronics” is a 16 company ranking that sets out to discover what leading electronics firms are doing to reduce their impacts on the environment.

This year’s study found that Indian firm Wipro, which has a consumer electronics division, was making important progress toward becoming greener.

“There is not a single reason why companies like HP, Nokia and Apple can’t do what Wipro is doing,” Greenpeace’s IT analyst Casey Harrell said.

Wipro was ranked number one in Greenpeace’s survey because of its efforts to increase its use of renewable energy, bring energy efficient products to market, nail down an effective product take back strategy and advocate for better governmental energy standards.

Harrell said that advocacy is an important step companies should take to becoming more environmentally aware. However, he believes that many companies are not doing enough to get the government involved in green initiatives.

“These companies invest a lot of money in advocacy, just not for energy,” continued Harrell.

“They invest in advocacy for things like IP reform and tax reform, just not for energy policy reform.”

Greenpeace’s study criticized Apple for its lack of advocacy efforts. The environmental agency gave the Iphone maker a ranking of zero when it came to environmental protection advocacy.

Apple has previously been slammed by Greenpeace for its decision to use glued-in batteries in its latest Macbook devices.

While many US companies rated poorly on environmental advocacy, Harrell still held out hope that some firms will try to do more going forward. As an example for his optimism, Greenpeace’s IT analyst said that in 2010 HP came out against the controversial California Proposition 23.

Another key area that Greenpeace thinks electronic firms need to improve upon is the lack of proper warranties on devices. Harrell said that companies can make the most energy efficient products in the world but if consumers have to buy a new product each year it won’t matter.

“It is a huge problem,” said Harrell.

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FCC Warns Against Jammers

The U.S. Federal Communications Commission has issued warnings to 20 online retailers offeriing illegal mobile phone jammers, GPS jammers, Wi-Fi jammers and other signal jamming devices, the agency said Wednesday.

The sale and use of devices that jam the signals of authorized radio communications are illegal in the U.S., the FCC said in its enforcement action. The agency will “vigorously” prosecute violations going forward, it stated in a press release.

“Our actions should send a strong message to retailers of signal jamming devices that we will not tolerate continued violations of federal law,” Michele Ellison, chief of the FCC’s enforcement bureau, said in a statement. “Jamming devices pose significant risks to public safety and can have unintended and sometimes dangerous consequences for consumers and first responders.”

Jammers, sometimes used in classrooms, theaters and churches, are prohibited because they can prevent individuals from contacting police and fire departments or family members during an emergency, the FCC said. “Use of jamming devices can place you or other people in danger,” the agency said.

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