Qualcomm is a leading name in the mobile industry, processors the company supplied most high-end smartphones on the market. The popular producer, however, was at the center of a new lawsuit, which was filed by the Federal Trade Commission in the US. The reasoning behind it is that Qualcomm sued unfair competition smartphone market used unfair tactics to profit at the expense of its competitors in the smartphone market, reported Nsmartphone.
WHY SUED UNFAIR COMPETITION SMARTPHONE MARKET?
The specific cause of the case is the agreement between Qualcomm and Apple from 2011. According to the parameters of the agreement the company became the exclusive supplier of some of the hardware components in smartphones from Apple. In return, Apple has the privilege to pay fewer license fees for patents of Qualcomm. Representatives of the Federal Trade Commission believe that this agreement harms competition because it allows another company to supply similar chips for the iPhone.
The deal is beneficial to both sides because thanks to her Apple can produce their smartphones at a much lower price. According to the indictment, these acts violate the laws of the company and affect negatively on competition in the industry. It will be interesting to see what will be the final decision of the court on this interesting case. If Qualcomm is guilty probably will have to pay substantial financial compensation.
Title: Qualcomm sued for unfair competition in the smartphone market
Updated: 2017-01-19
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