Qualcomm abused its position as a giant of the semiconductor industry to harm competition and charge cellphone makers excessive licensing fees, a federal judge has ruled, striking at the heart of the company’s business and potentially shaking up the smartphone industry. In a decision issued late Tuesday, Judge Lucy Koh of Federal District Court in San Jose, Calif., found that Qualcomm’s patent-licensing practices violated antitrust law. The decision was a victory for the Federal Trade Commission, which sued Qualcomm in 2017 over its patent practices. The agency accused the chip maker of charging “onerous” fees for the use of its patents, some of which were considered industry standards meant to be licensed on fair, reasonable terms. “Qualcomm’s licensing practices have strangled competition” in the market for wireless modem chips for years, Judge Koh wrote in the public version of her ruling, parts of which were redacted to protect trade secrets.

Source: New York Times May 22, 2019 10:54 UTC