Denying a motion to delay court proceedings while settlement talks are ongoing, U.S. District Judge Lucy Koh on Tuesday issued a preliminary ruling against Qualcomm in the Federal Trade Commission's antitrust lawsuit.
Qualcomm must license some of the patents it holds for smartphone modems to firms like Intel, Koh ruled according to Reuters. The company is accused of forcing companies like Apple to buy its wireless chips in exchange for better patent royalty rates.
In fact Apple was in an exclusive modem supply arrangement with Qualcomm for several years, but started mixing in Intel chips with 2016's iPhone 7, and is now Intel-only with the iPhone XS and XR.
The FTC case is related to an Apple action dating back to January 2017. Apple filed a $1 billion lawsuit shortly thereafter, marking the beginning of a global legal war, compounded by actions from various government bodies and Qualcomm accusations that Apple handed trade secrets to Intel to improve chip performance.
In August, Qualcomm reached a settlement with Taiwanese antitrust regulators, avoiding a $773 million fine in exchange for paying $93 million and investing $700 million in the country over the course of five years. It has also made deals with parties like Samsung, which like Apple is a major phone customer.
39 Comments
I really hope they resolve this quickly, because based on my owning every model of iPhone from 2007 to the Max, there’s no question that the QUALCOMM modem is far superior to the Intel version. I was so fortunate to have QUALCOMM modems in my iPhones right up through iPhone X. As much as I love my Max, I’m very disappointed with the quality of the Intel modem. Apple, are you listening?
Qualcomm is one of my least favorite tech companies. They really seem one step above a patent troll. For those who are all screaming about Qualcomm making better modems, hate to tell you it's one element in a complicated system. Not that big ideal. But them using this to force purchases of their other devices ETC is the problem. They really should do something else worthwhile.