Intel is arguing that the case against Qualcomm should stand in a new court filing. Intel sold its 5G modem business to Apple after years of failing to catch hold in the market and blames Qualcomm for the loss.
Qualcomm refuses to sell modem chips to a third-party handset manufacturer (OEM) unless the OEM takes a separate license to Qualcomm’s standard essential payments (SEPs) on Qualcomm’s preferred terms–including the payment of a royalty to Qualcomm on every handset an OEM sells, even if the handset uses a rival’s chip. That coercion allows Qualcomm to shift part of its chip revenues into its royalty rates, overcharging on the patent royalty while undercharging for chips. That manipulation of prices in turn destroys the normal competitive process in the chip market. It artificially limits OEMs’ interest in buying modem chips from suppliers like Intel because OEMs must pay Qualcomm’s manipulated royalty on top of whatever the competing supplier charges for the chip itself. At the same time, because Qualcomm has funneled its monopoly chip profits into coerced “royalties,” rivals like Intel cannot engage in meaningful price competition in the sale of modem chips.
Source: Intel Blames Qualcomm for Modem Business Failure, Urges Court to Uphold FTC Ruling – ExtremeTech