Qualcomm violated antitrust law, judge rules

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A federal judge sided with the Federal Trade Commission, which sued Qualcomm for charging phone makers excessing licensing fees.

Qualcomm violated antitrust laws by suppressing competition for cellphone chips and using its dominant position to charge unreasonably high prices for its patents, a federal judge has ruled.

The judgment comes a month after Qualcomm settled its epic dispute with Apple, ending years of litigation. The deal resolved all 80 lawsuits between them worldwide and included licensing and supply agreements. The legal battle stemmed from the iPhone maker’s allegation that Qualcomm abused its market position for wireless modem chips.

Qualcomm’s legal defeat may also carry foreign policy implications. The Trump administration has moved to limit China’s access to U.S. markets, especially in industries deemed vital to national security, such as telecommunications. Just last week, the White House placed Chinese telecom giant Huawei on a trade “blacklist.” But the Qualcomm decision may weaken the Huawei ban, Ives said, by giving Beijing leverage in the battle over smartphone chips.

Earlier this month, the U.S. Department of Justice weighed in on the dispute, warning that without first holding hearings on the matter, an overly broad remedy from Koh could stymie innovation in the market for next-generation wireless technology.

 

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