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| Qualcomm sued in US over claims of unfair phone chip patent deals | |
| (35 minutes later) | |
| Qualcomm, the world's biggest producer of mobile phone chips, forced Apple to exclusively use its products in return for lower fees, US regulators claim. | Qualcomm, the world's biggest producer of mobile phone chips, forced Apple to exclusively use its products in return for lower fees, US regulators claim. |
| Detail of the alleged deal were listed by the competition watchdog, the Federal Trade Commission, as part of a lawsuit against the chipmaker. | Detail of the alleged deal were listed by the competition watchdog, the Federal Trade Commission, as part of a lawsuit against the chipmaker. |
| The Apple deal is just one case where Qualcomm is accused of abusing its dominant market position, | The Apple deal is just one case where Qualcomm is accused of abusing its dominant market position, |
| The company has denied the allegations saying the case was "flawed". | The company has denied the allegations saying the case was "flawed". |
| The commission is suing Qualcomm for unfair practices in the way it licenses its technology - especially the processors used in cell phones and other devices. | The commission is suing Qualcomm for unfair practices in the way it licenses its technology - especially the processors used in cell phones and other devices. |
| The San Diego-based firm collects royalties on its chip technology, which has been driving the company's profits. | |
| 'Exclusivity' | 'Exclusivity' |
| The commission said in a statement that Qualcomm had "used its dominant position as a supplier of certain baseband processors to impose onerous and anticompetitive supply and licensing terms on cell phone manufacturers and to weaken competitors". | |
| A baseband processor is a chip in a smartphone or tablet that handles the cellular transmission. | A baseband processor is a chip in a smartphone or tablet that handles the cellular transmission. |
| According to the commission, the patents that Qualcomm was seeking from customers were widely used, and should have been licensed on fair, reasonable and non-discriminatory terms. | According to the commission, the patents that Qualcomm was seeking from customers were widely used, and should have been licensed on fair, reasonable and non-discriminatory terms. |
| Referring to the Apple case - which relates to the chips used in iPhones and iPads between 2011 and 2016 - the lawsuit 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." | Referring to the Apple case - which relates to the chips used in iPhones and iPads between 2011 and 2016 - the lawsuit 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." |
| 'Wrong' | 'Wrong' |
| Qualcomm said the portrayal of facts by the commission "as the basis for the agency's case is significantly flawed". | Qualcomm said the portrayal of facts by the commission "as the basis for the agency's case is significantly flawed". |
| It added it had "never withheld or threatened to withhold chip supply in order to obtain agreement to unfair or unreasonable licensing terms. The FTC's allegation to the contrary - the central thesis of the complaint - is wrong." | It added it had "never withheld or threatened to withhold chip supply in order to obtain agreement to unfair or unreasonable licensing terms. The FTC's allegation to the contrary - the central thesis of the complaint - is wrong." |
| Qualcomm shares closed 4% lower in US trade overnight. | Qualcomm shares closed 4% lower in US trade overnight. |
| The chipmaker has faced a series of antitrust rulings and investigations from other countries. | The chipmaker has faced a series of antitrust rulings and investigations from other countries. |
| In 2015 Qualcomm paid a $975m (£809m) in China following a 14-month long antitrust investigation. The company also had to lower royalty rates on patents used in China's mobile phone market. | In 2015 Qualcomm paid a $975m (£809m) in China following a 14-month long antitrust investigation. The company also had to lower royalty rates on patents used in China's mobile phone market. |