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Qualcomm practices violated antitrust law

|About: QUALCOMM Incorporated (QCOM)|By: , SA News Editor

U.S. District Judge Lucy Koh has sided with the FTC in an antitrust case, saying Qualcomm (NASDAQ:QCOM) "strangled competition" by charging unreasonably high royalties for its patents.

She ordered Qualcomm to renegotiate licensing agreements with customers free of unfair tactics - such as threatening to cut off access to its chips - and said it can't sign exclusive supply agreements with smartphone makers like Apple (NASDAQ:AAPL), which last month settled a lawsuit and agreed to continue paying licensing fees.

The decision could challenge the company's business model and will require Qualcomm to submit to monitoring for the next seven years.

QCOM -12% premarket