American chipmaker Intel made headlines when it sold its modem chip business to Apple this July. The firm has now opened on its decision. It said that due to Qualcomm’s illegal tactics, it took “a multi-billion dollar loss.”
Intel said in its court filing and a blog post published that it was forced out of the market because of Qualcomm’s patent licensing practices. It also supported the FTC’s case against Qualcomm.
“Intel fought for nearly a decade to build a profitable modem chip business. We invested billions, hired thousands, acquired two companies. Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year,” Steven Rodgers, executive VP and general counsel at Intel said.
“But when all was said and done, Intel could not overcome the artificial and insurmountable barriers to fair competition created by Qualcomm’s scheme and was forced to exit the market this year,” Rodgers added.
American telecommunications equipment company Qualcomm denied all of the FTC’s accusations. Back in July, the Pentagon and Department of Energy made it clear that Qualcomm would be impossible to replace as it was a trusted supplier of the 5G technology.
The Qualcomm appeal could begin as early as January 2020. Moreover, a group of automakers and auto-parts suppliers filed their statements against Qualcomm indicating that its licensing methods could boost 5G car prices.