Qualcomm violated antitrust laws, says US district judge

Qualcomm has been accused of supressing competition from smartphone chip rivals by threatening to cut off supplies and extract licensing fees. US District Judge Lucy Koh has ordered the company to renegotiate licensing agreements at reasonable prices. Qualcomm, a key player in the ITS industry - particularly in the nascent area of 5G technology - refutes the ruling. “We strongly disagree with the judge’s conclusions, her interpretation of the facts and her application of the law,” said Don Rosenberg
May 23, 2019 Read time: 2 mins
213 Qualcomm has been accused of supressing competition from smartphone chip rivals by threatening to cut off supplies and extract licensing fees.


US District Judge Lucy Koh has ordered the company to renegotiate licensing agreements at reasonable prices.

Qualcomm, a key player in the ITS industry - particularly in the nascent area of 5G technology - refutes the ruling. “We strongly disagree with the judge’s conclusions, her interpretation of the facts and her application of the law,” said Don Rosenberg, the telecoms firm’s general counsel.

It plans to ask Koh to delay her decision while also seeking to appeal to the federal appeals court in California.

The ruling serves as a win for the Federal Trade Commission (FTC) which filed a %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external complaint false https://www.ftc.gov/news-events/press-releases/2017/01/ftc-charges-qualcomm-monopolizing-key-semiconductor-device-used false false%> in a federal district court in 2017, saying that Qualcomm used anticompetitive tactics to maintain its monopoly in the supply of a semiconductor device used in mobile phones.

The FTC alleged that Qualcomm used its position as a supplier of certain baseband processors to impose anticompetitive supply and licensing terms on mobile phone manufacturers and to weaken its rivals.

FTC said that Qualcomm maintained a ‘no licence, no chip’ policy where it will supply its baseband processors on the condition that mobile phone manufacturers agree to its preferred licence terms. Additionally, the company refused to licence standard-essential patents to competing suppliers of baseband processors and used exclusivity to prevent Apple from working with and improving the effectiveness of Qualcomm competitors.

In 2017, Qualcomm announced a chipset based on the Release 14 cellular Vehicle to Everything specifications.

Maged Zaki, director, technology and product marketing, told ITS International: “This is 4G LTE-based – not, as some assume, 5G but it does provide a strong evolutionary route to 5G. And we’re not attempting to corner the market – since our announcement at least four other companies have produced or signalled their intention to produce chipsets.”

Enforcement

For more information on companies in this article

Related Content

  • Gulf Traffic signs partnership with Saudi Transport Ministry
    October 10, 2018
    The Gulf Traffic exhibition and conference has signed its first strategic partnership with the Saudi Transport Ministry (TM). Saudi Arabia has recently announced a $453 million infrastructure project to extend 23 roads across the country. “As we progress with our plan for the private sector to operate much of the kingdom's future transport infrastructure, being part of international platforms, such as Gulf Traffic in Dubai, will give us access to the transport suppliers needed to drive this strategy,” s
    Read More
  • Parliamentary council urges UK gov to support EC safety proposals
    May 18, 2018
    A key UK safety body is calling for legislative action on European Commission vehicle safety proposals. The Parliamentary Advisory Council for Transport Safety (PACTS) wants the EC’s third mobility package to be adopted by the UK government. These measures are part of the Juncker Commission’s initiative to implement less polluting vehicles in Europe and provide more advanced technological solutions. This package outlines a new road safety policy framework for 2020-2030 and is accompanied by two legislativ
    Read More
  • ITS Australia appoints first academic to board of directors
    November 30, 2018
    ITS Australia has appointed Professor Majid Sarvi from the University of Melbourne to its board of directors. Sarvi, the founder of transport technology programme AIMES, is the first academic to join the board. AIMES (Australian Integrated Multimodal EcoSystem) includes the university’s live test bed on Melbourne’s streets, and has close links with Michigan Department of Transportation. Sarvi described it as a “great honour to be elected by my peers in the ITS industry and to have the opportunity t
    Read More
  • Dura-Line products evolve with microtechnology
    June 7, 2019
    City authorities are going to benefit from higher-density products to carry fibre networks in future – particularly with developments such as the 5G roll-out. “We don’t know how much fibre we are going to need going forward but we know we are going to need more,” says Joseph Lange, Dura-Line business development manager – microtechnology, US. The company’s products are used by a number of utilities departments. For example, in one recent deployment, the City of Augusta used Dura-Line’s FuturePath Flex Locat
    Read More

Highlighted Content