, Columnist
Alibaba Wishes $2.8 Billion Could Take the Target Off Its Back
There are many more risks ahead, and a financial penalty likely won’t be the end of things.
If only $2.8 billion were the end of things.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
When Qualcomm Inc. was handed a record penalty by China’s antitrust regulators in 2015, executives at the U.S. chipmaker could have been forgiven for popping champagne.
Although they were on the hook for a $975 million fine, the ruling by the National Development and Reform Commission ended a yearlong investigation into the company and affirmed its technology-licensing business model. Proof of its lucky escape came over the next six years as China grew from composing 50% of Qualcomm’s revenue to 60% during a period when the company’s global sales actually dropped.