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U.S. Trade Commission accuses Qualcomm of forcing Apple into an exclusive deal

By Ciara Alarcon - on 18 Jan 2017, 2:06pm

U.S. Trade Commission accuses Qualcomm of forcing Apple into an exclusive deal

Investor's Business Daily

The U.S. Federal Trade Commission (FTC) has announced that it will file a case against Qualcomm for committing anti-competitive business tactics.

According to the lawsuit, the chipmaker is illegally maintaining a monopoly for semiconductors used in mobile phones, and pocketing elevated royalties from customers. Also, the FTC explained that Qualcomm forced Apple into an exclusive deal in return for lower licensing fees.

Aside from these, the lawsuit accused Qualcomm of recognizing any competitor that won Apple’s business would become stronger.  This is the reason why the chipmaker used exclusivity to prevent Apple from working with, and improving the effectiveness of Qualcomm’s competitors.

Last month, South Korea has fined Qualcomm USD 890, and described its practices as monopolistic.

Source: Bloomberg