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Intel says Qualcomm tactics forced it out of modem chip market

In its court filing and an accompanying blog post published on Friday, Intel said it was forced out of the market because of Qualcomm's patent licensing practices and supported the FTC's case against Qualcomm.

November 29, 2019 / 21:50 IST
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Intel Corp sold its smartphone modem chip business to Apple Inc at "a multi-billion dollar loss," the US chipmaker said in a court filing on Friday, alleging that rival Qualcomm Inc forced it out of the market.

Intel made the claims in a brief filed with the 9th US Circuit Court of Appeals, where Qualcomm is seeking to overturn a sweeping antitrust decision against it after losing a lawsuit by the US Federal Trade Commission. Intel, whose executives testified at the trial, argued on Friday that the ruling should stand. Appeal proceedings are expected to begin in January.

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In a 233-page decision issued in May, US District Judge Lucy Koh in San Jose wrote that Qualcomm's patent licensing practices "strangled competition" in parts of the market for modem chips that connect smartphones to mobile data networks. She ordered the San Diego-based company to renegotiate licensing agreements at reasonable prices.

Qualcomm appealed Koh's ruling and won a pause in enforcement while the appeal unfolds.