In January, the United States Federal Trade Commission filed a complaint against Qualcomm that accused the company of using anticompetitive tactics to remain the dominant supplier of baseband processors for smartphones, violating the FTC Act. This week, U.S. District Judge Lucy Koh of San Jose, California ruled that the FTC's antitrust lawsuit against Qualcomm can proceed, forcing the supplier to face legal battles both from U.S. regulators and in an ongoing $1 billion lawsuit from Apple (via Reuters).

Judge Koh denied Qualcomm's motion to dismiss the FTC's lawsuit, because the FTC had so far "adequately alleged" anticompetitive tactics were being used by Qualcomm. Don Rosenberg, executive vice president and general counsel of Qualcomm, said that the "FTC will have the burden to prove its claims, which we continue to believe are without merit."

qualcomm iphone 7

The Federal Trade Commission's antitrust lawsuit against Qualcomm Inc can proceed, a federal judge ruled late on Monday, meaning the iPhone chip supplier must now wage a fight with U.S. regulators even as it contests a separate $1 billion lawsuit filed by Apple Inc.

The FTC highlighted Qualcomm's "no license, no chips" policy under which the San Diego company refuses to sell chips unless customers also sign a patent license agreement and pay Qualcomm fees. Qualcomm refused to grant licenses to its rivals in order to keep a monopoly, the FTC alleged.

Although a final ruling is still far away, Rosenberg mentioned that Qualcomm looks forward to "further proceedings in which we will be able to develop a more accurate factual record." In response to the FTC's original complaint from January, Qualcomm cited a "flawed legal theory, a lack of economic support, and significant misconceptions about the mobile technology industry" in its first legal defense.

For Apple's lawsuit, the Cupertino company sued Qualcomm for $1 billion days after the FTC filed its first complaint in January, arguing the company had charged unfair royalties for "technologies they have nothing to do with." As the case continued throughout the year, in mid June Apple broadened its claims against Qualcomm, stating that Qualcomm wrongly bases its royalties on a percentage of the entire iPhone's value, despite supplying just a single component of the device.

Referred to as Qualcomm's "double dipping, extra reward system," Apple argued that these tactics were the same kind that the U.S. Supreme Court recently forbade in a lawsuit between Lexmark and a small company reselling its printer cartridges. After Qualcomm set its sights on four major Apple suppliers for failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices, Apple said that Qualcomm had revealed "its true bullying nature."

Top Rated Comments

djcerla Avatar
65 months ago
The free lunch is over.
Score: 6 Votes (Like | Disagree)
maflynn Avatar
65 months ago
This has now open a pandora's box that has me worried for the safety of this American company. I wonder if this is deliberate.
You reap what you so, and it seems they've gotten greedy. If they're smart, they'll start settling the cases with the government and apple, otherwise it will be a very long and drawn out ordeal for them (and expensive). Hard to be focused as a company when you're spending so much to focusing on suing or being sued
Score: 4 Votes (Like | Disagree)
thasan Avatar
65 months ago
Many companies and nations do this but we need to look at the real threats and that one is communist china being allowed to steal, cheat, buy and move out.
if u were in the academia, you would have seen how fast china is coming up with fundamental and applied research as well as engineering. give it another 5-10 years... if there is no world war III, china will lead the world in innovation.
Score: 4 Votes (Like | Disagree)
isomorphic Avatar
65 months ago
Many companies and nations do this but we need to look at the real threats and that one is communist china being allowed to steal, cheat, buy and move out.
So America should ignore indigenous corporate rule-breaking because China?

No, the US should apply its law consistently across all companies, foreign or domestic.

If your point is that the US' FTC is ignoring Chinese-company monopolies, fine, but that does not absolve Qualcomm. (Or Apple. Or Google, Amazon, Microsoft, Facebook...)
Score: 4 Votes (Like | Disagree)
thisisnotmyname Avatar
65 months ago
maybe they'll counter sue US regulators now too :-p
Score: 3 Votes (Like | Disagree)
rictus007 Avatar
65 months ago
Can we still blame Tim Cook for this?
Score: 2 Votes (Like | Disagree)

Popular Stories

maxresdefault

M2 13-Inch MacBook Pro With 256GB SSD Appears Slower Than Equivalent M1 in Real-World Speed Tests

Monday June 27, 2022 1:57 pm PDT by
Benchmark testing has indicated that the 256GB variant of the 13-inch MacBook Pro with M2 chip offers slower SSD performance than its M1 equivalent, and now real-world stress testing by YouTuber Max Yuryev of Max Tech suggests that the 256GB SSD in the 13-inch MacBook Pro is also underperforming in day-to day-usage. The M2 MacBook Pro with 256GB SSD and 8GB RAM was slower than the M1 MacBook ...
original iphone 2007

15 Years Ago Today, the iPhone Went On Sale

Wednesday June 29, 2022 4:43 am PDT by
Fifteen years ago to this day, the iPhone, the revolutionary device presented to the world by the late Steve Jobs, officially went on sale. The first iPhone was announced by Steve Jobs on January 9, 2007, and went on sale on June 29, 2007. "An iPod, a phone, an internet mobile communicator... these are not three separate devices," Jobs famously said. "Today, Apple is going to reinvent the...
macbook air m2

Exclusive: Apple Plans to Launch MacBook Air With M2 Chip on July 15

Wednesday June 29, 2022 5:23 pm PDT by
The redesigned MacBook Air with the all-new M2 Apple silicon chip will be available for customers starting Friday, July 15, MacRumors has learned from a retail source. The new MacBook Air was announced and previewed during WWDC earlier this month, with Apple stating availability will begin in July. The MacBook Air features a redesigned body that is thinner and lighter than the previous...
maxresdefault

Video Comparison: M2 MacBook Pro vs. M1 MacBook Pro

Tuesday June 28, 2022 2:45 pm PDT by
Apple last week launched an updated version of the 13-inch MacBook Pro, and it is the first Mac that is equipped with an updated M2 chip. As it's using a brand new chip, we thought we'd pick up the M2 MacBook Pro and compare it to the prior-generation M1 MacBook Pro to see just what's new. Subscribe to the MacRumors YouTube channel for more videos. For the video comparison, we're using the...
iPhone 11 Pro vs iPhone 14 Pro

iPhone 11 Pro vs. 14 Pro: New Features to Expect if You've Waited to Upgrade

Monday June 27, 2022 11:22 am PDT by
With many customers choosing to upgrade their iPhone every two or three years nowadays, there are lots of iPhone 11 Pro users who might be interested in upgrading to the iPhone 14 Pro later this year. Those people are in for a treat, as three years of iPhone generations equals a long list of new features and changes to look forward to. Below, we've put together a list of new features and...
iPhone vs Galaxy Larger

Apple Executive Says Samsung Copied the iPhone and Simply 'Put a Bigger Screen Around It'

Tuesday June 28, 2022 8:59 am PDT by
The Wall Street Journal's Joanna Stern today shared a new documentary about the evolution of the iPhone ahead of the 15th anniversary of the device launching on June 29, 2007. The documentary includes an interview with Apple's marketing chief Greg Joswiak, iPhone co-creator Tony Fadell, and a family of iPhone users. One segment of the interview reflects on Android smartphones gaining larger...
M2 Pro and Max Feature

Apple's Upcoming M2 Pro Chip for High-End MacBook Pro and Mac Mini Will Reportedly Be 3nm

Monday June 27, 2022 7:31 am PDT by
TSMC will manufacture Apple's upcoming "M2 Pro" and "M3" chips based on its 3nm process, according to Taiwanese industry publication DigiTimes. "Apple reportedly has booked TSMC capacity for its upcoming 3nm M3 and M2 Pro processors," said DigiTimes, in a report focused on competition between chipmakers like TSMC and Samsung to secure 3nm chip orders. As expected, the report said TSMC will...
Apple 5G Modem Feature Triad

Kuo: Apple's Work on 5G Modem Chip 'Failed,' Qualcomm to Remain Supplier for 2023 iPhones

Tuesday June 28, 2022 9:06 am PDT by
For the last several years, Apple has been working to develop its own 5G modem chip so that it won't need to rely on Qualcomm as a supplier, but according to Apple analyst Ming-Chi Kuo, Apple's efforts "may have failed." Kuo says that his "latest survey" suggests that development on the chip has stalled, which means Qualcomm would remain the exclusive supplier for 5G chips for the 2023...