Qualcomm defeats consumers’ antitrust claims over chip supply contracts

Qualcomm defeats consumers’ antitrust claims over chip supply contracts

Qualcomm has successfully defended itself against a consumer lawsuit in California federal court regarding its contracts with device manufacturers. The lawsuit claimed that these contracts resulted in an artificial increase in the cost of mobile phones, thereby violating U.S. antitrust law. U.S. District Judge Jacqueline Scott Corley ruled in favor of Qualcomm, stating that the consumer plaintiffs were attempting to revive old evidence that had already been closed in the case. This ruling marks another setback for the plaintiffs in their ongoing dispute with the company. The plaintiffs had challenged Qualcomm’s patent licensing and exclusive-dealing chip agreements with Apple and other manufacturers. This victory follows Qualcomm’s previous win against a similar lawsuit filed by the U.S. Federal Trade Commission in 2020, which alleged the same conduct. The 9th U.S. Circuit Court of Appeals also rejected the agency’s claims. Qualcomm has consistently denied any wrongdoing and has asked the judge to dismiss the consumers’ claims. The case is currently being heard in Corley’s court following a 2021 ruling by the 9th Circuit that struck down an order certifying a nationwide consumer class action. Earlier this year, Corley dismissed core antitrust elements of the plaintiffs’ claims but allowed the case to proceed. The consumers’ lawyers argued that Qualcomm disregarded a significant body of evidence supporting their allegations of exclusive dealing. However, Corley stated that the plaintiffs should not be given the opportunity to pursue a different opinion on Qualcomm’s alleged liability after the matter had already been alleged earlier. The consumers’ attorneys have expressed their disagreement with the court’s order and plan to appeal it. Qualcomm has not yet commented on the ruling.

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TIS Staff

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