American mobile phone chip maker Qualcomm has a dominant market position in South Korea and, if their competitors are right, they aren’t playing very nicely with others. Qualcomm is the only company in Korea providing CDMA chips. Texas Instruments and Broadcom claim that Qualcomm is exploiting this monopoly by bundling its CDMA chips with multi-media chips. The two companies are both trying to break into the South Korean market and claim that Qualcomm’s actions block their entry. They have filed their complaint with the Fair Trade Commission, a state-run watchdog organization in Korea.
Qualcomm is used to claims of unfair play. Earlier this year Korean makers claimed that they were bundling their chips with other software. As a result of those complaints, the company had their office in Seoul raided by regulators. Last year, Texas Instruments, Nokia and four others companies complained to the European Union that Qualcomm was collecting unfair royalty fees.