Qualcomm, San Diego based mobile chipmakers, was having the worst week possible which even got worst after Apple filed a law suit against them.
Qualcomm was found involved in anti competitive activity that is “no license, no chips” policy, which increased the licensing fees on the patents and forced mobile phone manufacturers to pay more for using competitor’s chips
U.S. Fedral Trade Commission (FTC) said that, “Qualcomm precluded Apple from sourcing baseband processors from Qualcomm’s competitors from 2011 to 2016. Qualcomm recognized that any competitor that won Apple’s business would become stronger, and used exclusivity to prevent Apple from working with and improving the effectiveness of Qualcomm’s competitors.”
In a statement Apple added on by saying that, “Qualcomm built its business on older, legacy, standards but reinforces its dominance through exclusionary tactics and excessive royalties. Despite being just one of over a dozen companies who contributed to basic cellular standards, Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined.”
Many proceedings have filed against Qualcomm all around the world, which includes South Korea and China which is making it rough for Qualcomm and affecting its status in the mobile chipset market.