A U.S. judge sided with the Federal Trade Commissioner and has ruled that Qualcomm can no longer bundle patent licensing deals with its hardware and allow modem-chip suppliers access to fair patent terms.
The Verge reported that Judge Lucy H. Koh said “Qualcomm’s licensing practices have strangled competition,” and has harmed “rivals, EOMs, and end consumers.” She added that the company’s royalty rates were “unreasonably high.”
The practice the judge is referring to is one Qualcomm likes to call “no license, no chips.”
The judge said it also had issues with the way Qualcomm manages its exclusive arrangements, in which the company will get into agreements where customers will exclusively use its chips in exchange for discounts.
As part of the ruling, Qualcomm has to agree to be monitored for seven years.
A lot of these practices were also discussed during the lawsuit between the chipmaker and Apple.
Source: The Verge