Fine on Qualcomm not to lead an instant price fall of mobile phones   

(ECNS) -- Fines against monopolies are meant to create fair and competitive markets, an official from the top economic planning body said in response to the hefty fine American chipmaker Qualcomm received.

After a 14 month investigation, China's National Development and Reform Commission (NDRC) decided to fine Qualcomm 6.1 billion yuan ($973.4 million) for violating anti-trust laws.

This is the largest fine in the history of China's anti-monopoly regulations. Analysts think the scale of the punishment could cause the price of mobile phones to drop.

Xu Kunlin, head of the NDRC's price supervision, inspection and anti-monopoly bureau, said the decision would lead to improved technology and lower prices, though it will take time for prices to fall, and that consumers would benefit from it ultimately.

China's economy is being developed and transformed, and therefore it depends upon technological innovation, which requires an open and competitive environment, it was added.

In 2009, two American businesses as well as a number of Asian companies, including Chinese enterprises, reported Qualcomm's monopolistic practices to NDRC.

On Nov 25, 2013 Qualcomm confirmed that it was facing an anti-monopoly inquiry from Chinese regulators.