South Korea’s Antitrust Regulator Probes Arm’s Licensing Practices Following Qualcomm Complaint

South Korea’s Fair Trade Commission (KFTC) has launched an inspection of Arm’s Seoul office as part of a widening investigation into the chip designer’s licensing practices. The probe stems from a complaint by Qualcomm Inc., which alleges Arm has abruptly shifted from an open licensing model to restrictive practices after decades of fostering industry-wide access to its technology.

Regulators are scrutinizing whether Arm’s revised business approach unfairly stifles competition. Qualcomm argues the changes disrupt the entire processor ecosystem, given Arm’s designs underpin nearly every modern smartphone. The KFTC’s visit follows similar complaints filed by Qualcomm with U.S. and European regulators, signaling a coordinated global challenge to Arm’s licensing framework.

At stake is the balance between proprietary control and open innovation in semiconductor IP. Qualcomm contends Arm’s pivot threatens competition just as demand surges for computing power across devices and AI hardware. The outcome could reshape licensing dynamics for an industry reliant on Arm’s ubiquitous architecture.