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“We have suffered multi-billion dollar losses.” Intel accuses Qualcomm of unfair competition in the market of cellular modems for smartphones

02.12.2019 0 Comments

“We have suffered multi-billion dollar losses.” Intel accuses Qualcomm of unfair competition in the market of cellular modems for smartphones

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The unexpected reconciliation of Qualcomm and Apple in April, which was the last in a round sum, left Intel with no other option than to abandon plans for the release of 5G modems for smartphones. As a result, Intel sold the business associated with the release of modems for smartphones. Apple, for $ 1 billion. Now it turned out that this forced decision turned into a “multi-billion dollar loss” for the processor giant.

The other day Intel complained to Qualcomm in court, accusing the latter of unfair competition in the market of modems for smartphones. The processor giant appealed to the 9th Circuit Court of Appeals in the United States, which is currently considering the case of the Federal Trade Commission (FTC) against Qualcomm regarding violation of antitrust laws. Recall that in May the court ruled that Qualcomm abused its dominant position and suppressed competition in the market of cellular modems for smartphones in the CDMA and premium LTE modem chips markets, ordering to change the business model. Qualcomm is now trying to challenge this decision.

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“We have invested billions, hired thousands of employees, acquired two companies and created innovative world-class products that were eventually used on Apple iPhone smartphones, including the latest iPhone 11. Despite all these efforts, Intel was unable to overcome the artificial and insurmountable barriers Qualcomm, for fair competition, was forced to leave the market, ”said Intel General Counsel in a Reuters comment.

Here is another comment from Stephen Rogers, Executive Vice President and General Counsel, Intel:

“Qualcomm maintained its monopoly through an impudent plan, carefully thought out and implemented over many years. This scheme consists of a chain of actions designed to coerce customers, clean up the competitive field and avoid control and liability for illegally received multibillion-dollar income. ”

Qualcom declined to comment.

Intel’s complaint and Qualcomm’s far from flawless reputation greatly diminishes the latter’s chances of winning an appeal.

By the way, just the other day we learned that Intel chose the Taiwanese company MediaTek as its partner, which will act as a supplier of 5G embedded modems for future laptops running Windows.

Source: Reuters and Hot Hardware

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