FTC Qualcomm give closing arguments in trial over mobile chip licenses

[Daniel Nenni]

This is the best non biased overview of the trial by CNET's Shara Tibken published today:

The US Federal Trade Commission's case against Qualcomm is now in the hands of a judge. On Tuesday the two sides presented their hour-long closing arguments in a case that could have big implications for the technology world. The FTC has accused Qualcomm of operating a monopoly in the mobile chip market, which hurt rivals and caused handset makers to raise their prices.

For the FTC to win the case, it has the burden of showing that Qualcomm had a monopoly, that it had market power and that it used that power in negotiations with handset makers to command high royalties. The FTC also has to show that Qualcomm's conduct hurt competitors and that the anticompetitive actions continue or will start again in the future....

FTC, Qualcomm give closing arguments in trial over mobile chip licenses - CNET

Judge Lucy Koh
United States District Judge of the United States
District Court for the Northern District of California

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[count]

While I do think Qualcomm has acted anticompetitively, I don't think you can call them a monopoly in a world where Mediatek exists and where Samsung and Huawei are making modems in house. I think a stronger case could be made for calling more of Qualcomms IP foundational, thereby requiring them to license it at a reasonable cost, but Apple/Intel have overreached in this case and it might cost them.

 

[Daniel Nenni]

In my opinion the FTC did not make their case but this is the other side of the coin:

Summary

• Qualcomm is likely to lose in an ongoing trial pitting the company against the U.S. Federal Trade Commission, the latest development in a global regulatory crackdown on the company’s business.
• The presiding judge is likely to force Qualcomm to renegotiate existing contracts and license its patents to its competitors, potentially cutting its earnings in half.
• Beyond its pending FTC loss, Qualcomm's current business case is bleak. The handset market is saturated and may begin declining; Samsung and Apple are in-sourcing processors.

Qualcomm Incorporated: Ignoring The Legal Risk Is Patently Ridiculous