Home News Qualcomm Wins a Pause in Enforcement of US FTC Ruling

Qualcomm Wins a Pause in Enforcement of US FTC Ruling

Qualcomm won a halfway remain against the requirement of a general antitrust ruling in a claim brought by the US Federal Trade Commission (FTC),as per a court recording on Friday. The company on May 21 lost in an antitrust claim and has been battling to have the ruling put on hold while it pursued an appeal.

The San Diego-based company contended that letting the decision stand could upend its talks with phone makers over chips for 5G, the next generation of wireless data networks.


In the decision issued on Friday, the 9th US Circuit Court of Appeals put on hold the arrangements of the prior decision that required Qualcomm to give patent licenses to opponent chip providers and end its routine with regards to requiring its chip clients to sign a patent permit before obtaining chips.

The previous decision would have required Qualcomm to renegotiate the majority of its current chip and patent deals, as well as make new deals fit in with the necessities. The remain conceded Friday puts on hold the impact of parts of the decision while the interests procedure, which could take a year or more, plays out.

The Qualcomm antitrust case was one of a kind in that various parts of the US government weighed in with differing views. The Department of Justice – the other essential antitrust regulator in the United States – said during the underlying trial that it disagreed with the FTC’s legal theory. Also, after the trial judge passed on a choice, the Pentagon and the Department of Energy both made filings saying that upholding the decision would harm national security.

“The government itself is isolated about the legitimacy of the judgement and its effect on the public interest,” the appeals court wrote in its ruling.

Shares rose quickly after the news yet then dropped 3.7% to $74.29 in afternoon trading on the Nasdaq. Shares have been unpredictable this year, ascending from the mid-$50 range to above $85 after Qualcomm settled a noteworthy claim with Apple however then dropping to the mid-$60 territory after its loss of the case brought by the FTC.

The company has not officially documented its appeal in the FTC claim. After Qualcomm files its contentions, the appeal will take place in January.

In a statement, Qualcomm general counsel Don Rosenberg said the organization accepts “the district court choice will be overturned once the benefits of our appeal have been considered.”