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By Mikey Campbell
Thursday, May 2, 2019, 8:01 pm Pacific Time (11:01 pm ET)
In a document filed Thursday, the US Department of Justice has preemptively requested a hearing on potential remedies if Qualcomm were to be held liable in an antitrust case brought by the Federal Trade Commission.
Qualcomm 5G hardware.
In its statement of interest filed with the US District Court of Northern California, the DOJ's antitrust division asked Justice Lucy Koh to hold a hearing on the sanctions to be given to Qualcomm in the event that License matter from the chip maker would be discovered. violating antitrust laws, reports Reuters.
According to the file, the corrective measures "should cause the least possible harm to other public policies", in a wording suggesting a concern about possible interference in major US markets. The Department of Justice then cites the 5G networks as a stumbling block.
Qualcomm is a leader in the development and manufacture of baseband chips, or cellular modems, used in smartphones around the world. It is currently accelerating the production of 5G modules as the world moves towards faster wireless technology. Carriers are already opting for fast technology in some markets, although broad access is not anticipated for 2020 or 2021.
If Koh votes in favor of the FTC, a too wide penalty could hinder Qualcomm – and America – in the 5G race.
"[T]There is a plausible possibility that an overly broad solution in this case could reduce competition and innovation in 5G technology markets and downstream applications that rely on this technology, "said the Ministry of Finance. Justice." Such a result could go beyond the proper scope of a fair system. antitrust remedy. In addition, it has the distinct potential to harm rather than help the competition. "
The FTC initially filed antitrust claims against Qualcomm in 2017, alleging that the company was seeking to maintain a monopoly in the wireless modem market through expensive patent licensing practices. Another lawsuit began in January and included testimony from industry heavyweights, including Apple's chief operating officer, Jeff Williams.
Koh has not yet rendered a judgment on the proceedings that ended on January 30th. Meanwhile, Qualcomm and the FTC continue to negotiate a possible settlement.
Along with the FTC's lawsuit, Apple itself sued Qualcomm for almost identical claims. This lawsuit has turned into a legal battle that has raged in courts around the world until an unexpected settlement is obtained in April.
The terms of the agreement implied a one-time Apple payment to Qualcomm (whose current value amounts to at least $ 4.5 billion), a multi-year supply agreement for the chipset and a six-year license agreement with an extension of two years.
Like most industry players, Apple's plans for an iPhone 5G are in the hands of Qualcomm. When the Apple v. Qualcomm Apple's existing modem provider, Intel, has announced a sharp exit from the 5G smartphone market, leaving Qualcomm at the center of the action. While Intel will provide 4G modems for 2019, Qualcomm is expected to manage the iPhone's cellular connectivity hardware by 2020. Apple would work on its own 5G modem, but the solution is known to arrive in 2021 at the earliest .
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