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Qualcomm loses a big antitrust case

The company suppressed competition in the smartphone chip market and then charged excessive licensing fees, a federal judge has ruled.

“Qualcomm’s licensing practices have strangled competition” in key parts of the modem chip market, the judge, Lucy Koh of the U.S. District Court in San Jose, wrote. That “harmed rivals, O.E.M.s, and end consumers in the process,” she added.

The company must now strike new licensing agreements with its customers that are free from “onerous” fees for the use of its patents. Qualcomm must also be monitored for the next seven years to ensure that it complies with the remedies.

Qualcomm is considered the industry leader in wireless modem chips, an ever-more-important position as the race to develop next-generation 5G wireless networks accelerates.