Intel complains to court that Qualcomm has ousted it from the market of modems for smartphones

Intel sold its business for the production of microchips for Apple’s smartphones with a “multi-billion loss” – a representative of Intel said this in court today, claiming that it was ousted from the market by a competitor, Qualcomm.

Intel has filed a lawsuit in the 9th Circuit Court of Appeals in the United States, where Qualcomm is trying to reverse its antitrust decision in a lawsuit filed by the US Federal Trade Commission (FTC). According to Intel, whose executives testified in court, the decision should remain in force. Appeal proceedings are expected to begin in January.

A decision in May by US District Judge Lucy Koh of San Jose said that Qualcomm’s patent licensing practice “stifled competition” in the smartphone modem market. The decision requires Qualcomm to review licensing agreements.

Qualcomm filed an appeal, winning a deferral in the execution of the decision for the duration of the appeal.

Intel was Qualcomm’s main competitor in the smartphone modem market and sold Apple components for the iPhone. But Apple signed an agreement to supply chips with Qualcomm, after which Intel announced the sale of the business for the production of modems. In July, Apple bought it for about $ 1 billion.

“We have invested billions, hired thousands, acquired two companies, and created world-class innovative products that ultimately ended up in Apple iPhone smartphones, including the latest iPhone 11,” said Intel’s legal adviser. “But when everything was said and done, Intel was unable to overcome the artificial and insurmountable barriers to fair competition created by Qualcomm, and was forced to leave the market.”

Qualcomm denies FTC charges. The company was supported by the Pentagon and the US Department of Energy, saying Qualcomm is a reliable provider of 5G technology and is “impossible to replace” in the short term if it goes bankrupt.

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