US FTC Withdraws Antitrust Lawsuit Against Qualcomm... IT Industry on Alert

End of 4-Year Antitrust Lawsuit... Qualcomm's De Facto Victory
Qualcomm's Influence Over Smartphone Manufacturers Expected to Expand

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] U.S. regulatory authorities have abruptly withdrawn the antitrust lawsuit against Qualcomm, a semiconductor company for telecommunications. As a result, Qualcomm is seen to have effectively won the legal battle against the government, leading to expectations that Qualcomm's influence in the smartphone industry will further expand.

On the 29th (local time), the U.S. Federal Trade Commission (FTC) announced that it would not appeal to the U.S. Supreme Court regarding the antitrust lawsuit against Qualcomm. In the second trial held last year at the Court of Appeals, Qualcomm was ruled not to have violated antitrust laws, favoring Qualcomm. On this day, the FTC issued a statement saying, "We have decided not to file a petition for a writ of certiorari to the Supreme Court regarding the Court of Appeals ruling."

Previously, in 2017, the FTC filed a lawsuit against Qualcomm in a California state court for alleged antitrust violations. At that time, the FTC explained that Qualcomm had demanded excessive patent royalties from smartphone manufacturers by leveraging its dominant market position. Subsequently, in the first trial in 2019, the court ruled in favor of the FTC.

However, in the 2020 appeal trial, the court overturned the first trial's ruling. The court judged that "Qualcomm's requirement for smartphone manufacturers to enter into patent license agreements was not anti-competitive."

The FTC's withdrawal of the lawsuit on this day is analyzed as effectively 'endorsing' Qualcomm's royalty business system, leading to forecasts that Qualcomm's influence in the smartphone industry will be further strengthened. Previously, Apple also filed a lawsuit claiming Qualcomm's demanded royalties were excessively high but withdrew it in 2019. This withdrawal by Apple is interpreted as due to Qualcomm's modem chips being essential components for iPhone manufacturing, making it difficult for Apple to sever ties with Qualcomm.

Samsung also receives semiconductor chips from Qualcomm for its smartphone manufacturing and signed a royalty agreement with Qualcomm in 2018 as compensation.

Meanwhile, in South Korea, the Supreme Court is currently reviewing the antitrust lawsuit between the Korea Fair Trade Commission and Qualcomm. In the first trial, the court ruled in favor of the Fair Trade Commission, stating that the imposition of fines by the commission was justified.

This content was produced with the assistance of AI translation services.