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Qualcomm forced Apple into exclusive chip deal, FTC says

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NewsHubQualcomm is accused of anticompetive practices when it comes to licensing its patents.
Qualcomm forced Apple to use its chips exclusively in exchange for lower licensing fees, excluding competitors and harming competition, the US said in a lawsuit Tuesday.
The lawsuit, filed by the Federal Trade Commission, accuses Qualcomm, the world’s biggest maker of baseband processors for mobile phones, of maintaining a monopoly over chips for cellular phones through a “no license, no chips” policy. That policy imposed “onerous” supply and patent-licensing terms to extract high royalties from cell phone makers and weaken competitors, the commission said.
“Qualcomm recognized that any competitor that won Apple’s business would become stronger, and used exclusivity to prevent Apple from working with and improving the effectiveness of Qualcomm’s competitors,” the FTC said in a statement .
The lawsuit continues a pattern of antitrust scrutiny directed at Qualcomm in recent years.

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