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U.S. Federal Trade Commission Sues Qualcomm for Anti-Competitive Practices

Accepted submission by takyon at 2017-01-18 11:52:33
Techonomics

The U.S. FTC is going after Qualcomm [ftc.gov]:

The Federal Trade Commission filed a complaint in federal district court charging Qualcomm Inc. with using anticompetitive tactics to maintain its monopoly in the supply of a key semiconductor device used in cell phones and other consumer products. Qualcomm is the world's dominant supplier of baseband processors – devices that manage cellular communications in mobile products. The FTC alleges that Qualcomm has used its dominant position as a supplier of certain baseband processors to impose onerous and anticompetitive supply and licensing terms on cell phone manufacturers and to weaken competitors.

[...] According to the complaint, by threatening to disrupt cell phone manufacturers' supply of baseband processors, Qualcomm obtains elevated royalties and other license terms for its standard-essential patents that manufacturers would otherwise reject. These royalties amount to a tax on the manufacturers' use of baseband processors manufactured by Qualcomm's competitors, a tax that excludes these competitors and harms competition. Increased costs imposed by this tax are passed on to consumers, the complaint alleges. By excluding competitors, Qualcomm impedes innovation that would offer significant consumer benefits, including those that foster the increased interconnectivity of consumer products, vehicles, buildings, and other items commonly referred to as the Internet of Things.

Get in line:

EU Investigates Qualcomm For Antitrust Activities [soylentnews.org]
Qualcomm Faces EU Antitrust Charges Over "Predatory Pricing" [soylentnews.org]
Qualcomm Fined $853 Million by South Korea for Antitrust Violations [soylentnews.org]

Also at Bloomberg [bloomberg.com] and The Verge [theverge.com].


Original Submission