While the San Diego-based company is counting on LTE smartphone sales in China to fuel growth, it has faced challenges in doing business there. In a filing today, Qualcomm said it received a Wells notice from the U.S. Securities and Exchange Commission last month that the agency recommended enforcement action related to bribery allegations in China.
Qualcomm said it first became aware of the investigation in 2012 and started its own inquiry. The company discovered that it had provided employment considerations, gifts and other benefits to “individuals associated with Chinese state-owned companies or agencies,” according to the filing. The total value of the gifts was less than $250,000, Qualcomm said, and it’s cooperating with inquiries at the SEC and the U.S. Department of Justice.
In November, the company disclosed that China’s National Development and Reform Commission had begun an investigation related to an anti-monopoly law.