Qualcomm is forced to buy Apple LTE modems in exchange for “interesting conditions”
18.01.2017 0 Comments
The Federal trade Commission (Federal Trade Commission, FTC) filed suit against Qualcomm, accusing it of unfair competition. According to the investigation, the company in exchange for lower royalties for patents owned by Apple were forced to use only communication modems Qualcomm.
Lately Qualcomm has increasingly become the object of attention for different antitrust authorities in different countries. According to Bloomberg, the FTC has filed a lawsuit against Qualcomm, accusing it of anti-competitive behavior.
The Department believes that Qualcomm illegally received orders from Apple for the past five years (2011 to 2016). She suggested the iPhone maker discounts on royalties in return for what he has pledged to only use chips wireless Qualcomm.
In addition, Qualcomm is accused that threatened some companies ‘ refusal to supply its products if they would not pay for licenses at inflated prices.
In response Qualcomm has stated that it intends to appeal the lawsuit the FTC, which claims to be based on erroneous legal theory and aims to promote the interests and strengthen the influence of the smartphone manufacturers.
Despite significant production volumes of its own chips, including the Snapdragon processors that are installed in many Android smartphones, the main source of income remain the Qualcomm royalties. If the result of the company’s vessels will have to change the terms of the patent contracts, its revenues may be seriously damaged.
Recently Qualcomm has been fined by the Antimonopoly service of South Korea for $853 million for similar violations.