Qualcomm, the world’s biggest supplier of mobile phone chips, violated antitrust laws.
US District Judge Lucy Koh ordered Qualcomm to change its pricing and sales practices, after finding it “engaged in anticompetitive conduct” toward customers like China’s Huawei, Samsung and Sony. The California-based company’s shares had soared after reaching a settlement with Apple last month over royalty payments for chips used in smartphones, which was expected to generate a windfall of US$4.5 billion.
The judge ruled that Qualcomm must negotiate terms for its patents on fair and reasonable terms without using threats or discriminatory tactics. Qualcomm’s woes appeared to ease earlier this year when it agreed with Apple to settle all worldwide litigation in what had been a sprawling battle over royalty payments.Judge Koh said Qualcomm’s actions harmed rivals in the smartphone modem business, including Taiwan-based MediaTek and US-based Intel, which last month pulled out of the market for 5G modems at the same time Apple settled its case with Qualcomm.
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