US chipmaker Qualcomm has robustly defended its business practices as the antitrust lawsuit against them draws to a close.
In their closing testimony Qualcomm declared that the US Federal Trade Commission (FTC) had ultimately failed to prove that the chipmaker’s business practices had harmed its competitors during the course of the trial.
FTC have alleged that Qualcomm used its market dominance in its smartphone chip development to force phone suppliers to pay higher patent licensing fees, in other words it claims the company which is headquartered in San Diego had an unfair monopoly.
Both parties now must wait for the ruling from the judiciary, although reports have suggested that the decision is not likely to be delivered any time soon.
In a statement which summarized Qualcomm’s closing argument in court, the company’s EVP and general counsel Don Rosenberg said the FTC hasn’t come close to meeting its burden of proof in this case.
Rosenberg said, “All real-world evidence presented at trial showed how Qualcomm’s years of R&D and innovation fostered competition, and growth for the entire mobile economy to the benefit of consumers around the world.”
In addition to this, Rosenberg highlighted that Qualcomm’s licensing rates were established long before it had set up its lucrative chip business and accurately reflected the value of its comprehensive patent portfolio.
The FTC closed their arguments by stressing to the judiciary that the powerful chipmaker had used its muscle and dominance in the 3G and 4G chip market to force smartphone manufacturers like Apple to sing licensing agreements with excessively high royalties.
Prosecutors on behalf of FTC argued this approach would continue in the 5G era if Qualcomm isn’t stopped.
During the trial, the FTC called witnesses from a number of handset companies including Apple, Samsung, Intel and Huawei to testify that Qualcomm had used unfair practices, harming competition in the industry.