In a ringing preliminary win for Apple and the Federal Trade Commission, a federal judge will allow antitrust claims to proceed against Qualcomm Inc. based on a theory that the chip giant combined its monopoly over cellphone chip supply with its patent portfolio to extract inflated royalty rates.
U.S. District Judge Lucy Koh of the Northern District of California blessed the FTC’s theory that San Diego-based Qualcomm has violated Sections 1 and 2 of the Sherman Act by using its monopoly power over high-end modem chips to impose unfair royalty rates on smartphone makers and block out chip competitors.
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