Qualcomm has received its attraction in opposition to the FTC.


Corinne Reichert/CNET

Qualcomm has won its appeal against the US Federal Trade Commission, with the courtroom discovering that Qualcomm’s licensing insurance policies aren’t anticompetitive. In a judgment revealed Tuesday, the Court docket of Appeals for the Ninth Circuit vacated the earlier judgment, reversing the district court’s permanent worldwide injunction against Qualcomm’s business practices, which required it to renegotiate charges with rivals.

In line with the ruling, Qualcomm didn’t impose an anticompetitive surcharge on its competitor cellphone chip suppliers, and didn’t undermine competitors by charging royalties. The courtroom additionally mentioned Qualcomm’s Apple contracts in 2011 and 2013 didn’t considerably foreclose competitors to take care of its monopolies within the CDMA and LTE chip markets. 

“Anticompetitive conduct is unlawful beneath federal antitrust regulation. Hypercompetitive conduct is just not,” the courtroom mentioned. “Qualcomm has exercised market dominance within the 3G and 4G mobile modem chip markets for a few years, and its enterprise practices have performed a strong and disruptive position in these markets, in addition to within the broader mobile companies and know-how markets. The corporate has asserted its financial muscle ‘with vigor, creativeness, devotion and ingenuity.'”

Learn extra: Qualcomm-FTC lawsuit: Everything you need to know

Qualcomm had appealed the case after the District Court docket dominated in favor of the FTC in Might 2019. That ruling mentioned Qualcomm wrongfully suppressed rivals within the cellphone chip market through the use of its dominance to power rivals to pay excessive licensing charges.

The case started with the FTC accusing Qualcomm three years in the past of forcing prospects like Apple to work with it completely, and of charging extreme licensing charges for its know-how. 

Qualcomm and the FTC did not instantly reply to a request for remark.





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Corinne Reichert