SAN FRANCISCO (TheStreet) -- Qualcomm (QCOM) is under investigation for potential antitrust breaches in Europe as well as the U.S., the company disclosed Wednesday. These new antitrust probes add to legal woes the company is already facing in China, which could undermine its business opportunities there.
The European Commission is taking a look at the rebates and financial incentives offered by the Southern California semiconductor maker in the sale of its chips, according to a Reuters report. Additionally, the U.S. Federal Trade Commission is inquiring into whether Qualcomm breached its licensing terms.
These latest moves by regulators add to Qualcomm's antitrust problems, which include an 11-month investigation by the China National Development and Reform Commission. China's NDRC investigation centers on Qualcomm's royalties that it imposes on customers that use its patents.
Reuters said that Wall Street is worried Qualcomm could face a fine of more than $1 billion from the NDRC investigation. Qualcomm shares fell nearly 6% in late trading Wednesday.
In its earnings report Wednesday, Qualcomm CEO Steve Mollenkopf said in a statement, "Our fiscal 2015 outlook reflects continued LTE leadership in our semiconductor business and is tempered by the issues we are facing in China related to our licensing business."
On the China investigation, the company said:
China continues to present significant opportunities for us, particularly with the rollout of 3G/4G LTE multimode, but also presents significant challenges, as our business practices continue to be the subject of an investigation by the China National Development and Reform Commission.
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