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5/22, 11:18 AM (Source: TeleTrader)
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Qualcomm-1.70%

86.42
Chart for: QUALCOMM Incorporated

Judge rules Qualcomm breached antitrust regulation

United States District Judge in San Jose, California ruled that chipmaker Qualcomm Inc. abused its dominant position to push competitors out of the market, the Wall Street Journal reported on Wednesday. The company charged smartphone makers high licensing fees for its products as a result of its market dominance. Additionally, the judge challenged Qualcomm's entire business model in the ruling, as the company charged percentage based on the price of different smartphone models.

"Qualcomm’s licensing practices have strangled competition... and harmed rivals, [original equipment manufacturers], and end consumers in the process," Judge Lucy Koh wrote. She also asserted that Qualcomm was a leading developer of chips for smartphones using fifth generation internet connection (5G), which suggested it would continue the illegal business practice in the future.

The ruling backed the previous lawsuit started against Qualcomm by the US Federal Trade Commission (FTC) in January 2017. Judge Koh ordered the company to redo the licensing agreements with its clients at reasonable prices. Additionally, the company is obliged to be subject to monitoring for the following seven years.

Breaking the News / SS