Months following the well-publicised sale of its smartphone modem business to Apple, Intel has hit out at Qualcomm, accusing the semiconductor giant of market dominance misbehaviour.
Intel has now filed a brief with the US District Court of Northern District of California supporting the Federal Trade Commission (FTC) and opposing Qualcomm’s appeal, as the semiconductor giant fights against the condemning decision it is unfairly destroying market competition.
“Intel agrees with the District Court’s findings,” said Intel General Counsel Steven Rodgers.
“Intel suffered the brunt of Qualcomm’s anticompetitive behaviour, was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm. We filed the brief because we believe it is important for the Court of Appeals to hear our perspective.”
The anti-competition spat between the FTC and Qualcomm has been going on for years now, though it did seem to come to a head over the summer. The District Court ruled Qualcomm was abusing its position as market leader, strangling competition with unfair pricing models to effectively maintain a monopoly, though Qualcomm filed an appeal in July to reverse the decision.
Although Intel now has no skin left in the game, it sold its own 5G modem business to Apple earlier this year, reportedly for $1 billion, it is seemingly attempting to throw one last bitter barb at Qualcomm.
Intel has said in the filing that it was forced to exit the market because of the anti-competitive behaviour of Qualcomm. Through complicated and suspect contract negotiated with customers, Intel could not make the business profitable, which it now argues ultimately creates a negative gain for the consumer.
Interestingly enough, this is not the only voice of support for the FTC and in opposition of the Qualcomm appeal. Trade groups representing the likes of BMW, Continental, General Motors and Ford have also said if Qualcomm wins the appeal and is allowed to continue its current business model, it would create a precarious position for the emerging connected car segment.
On the other side of the fence, Qualcomm is mustering its own support. The US Department of Justice, the Cause of Action Institute and the Alliance of US Start-ups and Investors for Jobs have all filed amicus briefings in support of Qualcomm, and a reversal of the original antitrust decision from the US District Court.
While being found guilty of anticompetitive behaviour is nothing new for Qualcomm, it has faced already faced hefty fines in Korea, Taiwan and Europe, this legal work is bread and butter for Qualcomm. This is a company which has an army of lawyers and seemingly specialises as much in the legal world as the technology one. Qualcomm will fight this ruling to the dying breath, as while a fine is certainly unattractive, the decision fundamentally undermines the business model which has brought billions to the firm.