Judge Rules Qualcomm's Practices Violate Antitrust Law
22 Maggio 2019 - 01:11PM
Dow Jones News
By WSJ City
Qualcomm unlawfully suppressed competition in the market for
cellphone chips and used its dominant position to exact excessive
licensing fees, a federal judge ruled in a decision that could
challenge the company's business model and shake up the smartphone
industry.
KEY FACTS:
-- Qualcomm collected billions of dollars by charging royalties on a
percentage of a smartphone's price.
-- This was challenged by US District Judge Lucy Koh.
-- The judge ordered that Qualcomm negotiate licensing agreements with
customers free of unfair tactics...
-- Such as threatening to cut off access to its chips. Qualcomm must also
license its patents to rival chip makers at fair and reasonable prices.
-- It can't sign exclusive supply agreements with smartphone makers that
block rivals.
-- Qualcomm didn't immediately respond to a request for comment late
Tuesday.
Why This Matters
The decision sided with the FTC, which brought an antitrust
lawsuit against Qualcomm in January 2017. The ruling clouds the
outlook for Qualcomm, which long has generated more profit from
patent licensing than the sale of its chips. But it could lower
costs for Apple and other smartphone makers that have complained
Qualcomm's pricing tactics allowed it to profit off innovations
unrelated to its patents such as new displays or cameras.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
May 22, 2019 06:56 ET (10:56 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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