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U.S. judge says Qualcomm violated antitrust law; appeal planned, shares plunge
Source: Reuters
BUSINESS NEWS MAY 22, 2019 / 6:21 AM / UPDATED 31 MINUTES AGO
U.S. judge says Qualcomm violated antitrust law; appeal planned, shares plunge
Sayanti Chakraborty
4 MIN READ
(Reuters) - Qualcomm Inc illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees, a U.S. judge ruled, a decision that could force the company to overhaul its business practices.
The decision issued late Tuesday night by U.S. District Judge Lucy Koh in San Jose, California, caused Qualcomm shares to plunge 9.5 percent in early trading on Wednesday.
“Qualcomm’s licensing practices have strangled competition” in parts of the chip market for years, harming rivals, smartphone makers, and consumers, Koh wrote in a 233-page decision.
She ordered the San Diego-based company to renegotiate licensing agreements at reasonable prices, without threatening to cut off supplies, and ordered that it be monitored for seven years to ensure its compliance.
Qualcomm said it will immediately ask Koh to put her decision on hold, and also seek a quick appeal to the federal appeals court in California.
-snip-
U.S. judge says Qualcomm violated antitrust law; appeal planned, shares plunge
Sayanti Chakraborty
4 MIN READ
(Reuters) - Qualcomm Inc illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees, a U.S. judge ruled, a decision that could force the company to overhaul its business practices.
The decision issued late Tuesday night by U.S. District Judge Lucy Koh in San Jose, California, caused Qualcomm shares to plunge 9.5 percent in early trading on Wednesday.
“Qualcomm’s licensing practices have strangled competition” in parts of the chip market for years, harming rivals, smartphone makers, and consumers, Koh wrote in a 233-page decision.
She ordered the San Diego-based company to renegotiate licensing agreements at reasonable prices, without threatening to cut off supplies, and ordered that it be monitored for seven years to ensure its compliance.
Qualcomm said it will immediately ask Koh to put her decision on hold, and also seek a quick appeal to the federal appeals court in California.
-snip-
Read more: https://www.reuters.com/article/us-qualcomm-antitrust/u-s-judge-says-qualcomm-violated-antitrust-law-appeal-planned-shares-plunge-idUSKCN1SS134
