Intel says Qualcomm tactics forced it out of modem chip market

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Intel Corp sold its smartphone modem chip business to Apple Inc at 'a multi-billion dollar loss,' the U.S. chipmaker said in a court filing on ...

REUTERS: Intel Corp sold its smartphone modem chip business to Apple Inc at"a multi-billion dollar loss," the U.S. chipmaker said in a court filing on Friday, alleging that rival Qualcomm Inc forced it out of the market.

Intel made the claims in a brief filed with the 9th U.S. Circuit Court of Appeals, where Qualcomm is seeking to overturn a sweeping antitrust decision against it after losing a lawsuit by the U.S. Federal Trade Commission. Intel, whose executives testified at the trial, argued on Friday that the ruling should stand. Appeal proceedings are expected to begin in January.In a 233-page decision issued in May, U.S.

"We invested billions, hired thousands, acquired two companies and built innovative world-class products that eventually made their way into Apple's industry-leading iPhones, including the most recently released iPhone 11," Steven R. Rodgers, Intel's general counsel, wrote in the post. "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."

Qualcomm has denied the FTC's accusations, and other parts of the U.S. government urged the appeals court to pause enforcement of the FTC ruling against it. In July, the Pentagon and the Department of Energy said Qualcomm was a"trusted" supplier of 5G technology and would be"impossible to replace" in the short term if put out of business.

 

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