U.S. federal trade commission (FTC) has sued Qualcomm after it faced a lot of similar charges from across the world. As per the information provided by the tech crunch, the FTC filed charges against Qualcomm in the accusation of the company making the use of anticompetitive tactics. The monopoly in its chip business is attempted to maintain by the San Diego-based Snapdragon maker.
The allegations are detailed and described, claiming that the Qualcomm practiced ‘no license, no chips’ policy. It consists of elevating licensing fees for patents and forcing the other smartphone company manufacturers to pay more for using the competitor’s chip. These allegations have been stated in the statement issued by the commission on Tuesday, Jan 17.
The other suppliers of semiconductor devices do not impose such condition as stated by the FTC. The risk of losing the access to the baseband processors made by the Qualcomm is getting too great for all the cell phone makers because the manufacturer would not be able to sell its phones for use on top cellular networks.
Qualcomm’s fees are ‘disproportionately’ high as the lawsuit claimed, according to the Verge. It is much higher than the value they contribute to an overall device. This fee is also too high relative to what competitors charge in the contribution to the device, as the state by the lawsuit. The FTC also says that the added cost is hurting the consumers, being passed down to the end price of the product. According to the Qualcomm, the FTC is wrong to say all about this and in response to the charges, the core of Lawsuit is flawed in their vision. The company has never withheld chip supplies to cell phone manufacturers in order to make the agreement to unfair licensing terms.
Other Anticompetitive Complaints Against Qualcomm
It is just another complaint in the long series of anticompetitive complaints against Qualcomm all over the world. They have resulted in Scrutiny as well as large fines in China ($975 million) in 2015 and south Korea ($854 million) in December 2015.