Skip to main content
  1. Home
  2. Phones
  3. Business
  4. Mobile
  5. News

Federal Trade Commission hits Qualcomm with a lawsuit over its licensing practices

Add as a preferred source on Google

Qualcomm has been sued by the Federal Trade Commission for allegedly violating antitrust laws in the way that it licenses its patents and sells modems for smartphones and other similar devices.

So how exactly did Qualcomm allegedly do this? According to the FTC’s statement, Qualcomm uses its dominance in the smartphone industry to elbow out the competition. Manufacturers are then given a choice — either pay extra for the use of Qualcomm’s essential patents, or be faced with releasing a phone on a limited scale.

Recommended Videos

According to the lawsuit, Qualcomm maintains a “no license, no chips” policy, in which it refuses to sell smartphone chips to companies that don’t agree to its elevated royalty fees. That means companies are often forced to comply if they want to release a phone on a wide basis, as there are few semiconductor companies that can manufacture chips on the same scale as Qualcomm.

Qualcomm agreed to license its patents on a fair, reasonable, and nondiscriminatory basis because they’re considered essential to the industrywide standards, but it reportedly won’t license them to competitors at all, which is how it can overcharge phone makers.

The lawsuit also goes into detail about the relationship between Qualcomm and Apple. According to the FTC’s statement, Apple agreed not to use other companies’ tech for five years, and in exchange, Qualcomm paid back some of those high fees. That explains why Apple waited until this year to switch from Qualcomm modems to Intel modems.

So what happens next for Qualcomm? Well, the FTC is asking that the courts undo and prevent Qualcomm’s methods of competition. The lawsuit could be a pretty big issue for the company because while it’s known for building smartphone processors, it makes most of its money by licensing patents.

Christian de Looper
Christian de Looper is a long-time freelance writer who has covered every facet of the consumer tech and electric vehicle…
REDMAGIC Astra 2 review: I finally found a no-holds-barred warrior for tablet gaming
A rare gaming tablet that outshines the gimmick with terrific performance, admirable cooling, and a lovely screen.
Red Magic Astra 2 gaming tablet.

see at redmagic

Quick Recap

Read more
Samsung wants to turn your everyday spending into cash back with rewards built right into your Galaxy Wallet
Your everyday spending just got a little more rewarding.
Samsung Galaxy Wallet featured

Every time I install a cash-back app, it ends up in the same graveyard as my gym membership and unused streaming trials. Samsung wants to spare Galaxy owners that fate by bringing cash-back rewards into the Samsung Wallet they already use every day.

The company has announced Samsung Wallet Perks, a shopping-rewards service powered by Rakuten. As it rolls out, eligible Galaxy users in the U.S. can earn cash back and spend it through the Samsung Cash Card inside Wallet (via Samsung).

Read more
Raycast’s new iOS keyboard app lets you dictate, swipe type and use AI commands without switching apps
Tired of switching keyboards to access AI tools? Raycast wants to put everything you need right where you type.
raycast-primary-ios-keyboard

Raycast wants your iPhone keyboard to do more than just typing out messages. Its new primary keyboard for iOS combines everyday typing with AI tools, voice dictation, GIF search, and text shortcuts. The biggest change is that you no longer need to switch keyboards to use Raycast's productivity features.

https://twitter.com/raycast/status/2115803472037572751?s=19

Read more