Qualcomm Challenges Arm’s Market Power in Antitrust Complaints Worldwide

Qualcomm  has initiated a global antitrust campaign against Arm Holdings Plc, accusing its longtime partner of engaging in anticompetitive behavior as the two companies vie for dominance in the computing semiconductor industry. According to Bloomberg, Qualcomm has taken its grievances to regulators across three continents, arguing that Arm is unfairly restricting access to its technology.

The San Diego-based chipmaker has submitted complaints to the European Commission, the U.S. Federal Trade Commission, and South Korea’s Fair Trade Commission, per Bloomberg. Qualcomm contends that Arm, which has historically operated under an open licensing model, is now tightening control over its technology to bolster its own profits. This shift, Qualcomm argues, could stifle competition in an industry that has long thrived on broad access to Arm’s chip designs.

Related: Qualcomm Wins Ninth Circuit Appeal in California Antitrust Case

Arm, however, maintains that its business practices are fair. In an emailed statement cited by Bloomberg, the company asserted, “Arm remains focused on enhancing innovation, promoting competition, and respecting contractual rights and obligations. Any allegation of anticompetitive conduct is nothing more than a desperate attempt by Qualcomm to detract from the merits and expand the parties’ ongoing commercial dispute for its own competitive benefit.”

The dispute between the two companies is also playing out in U.S. courts. According to Bloomberg, Qualcomm’s antitrust complaints align with arguments it previously made in a legal battle initiated by Arm in Delaware. In that case, Qualcomm successfully argued that it did not require a new license to use Arm’s technology after acquiring a chip startup. The company has accused Arm of seeking new revenue streams following its acquisition by Japan’s SoftBank Group Corp. and the failed attempt to sell the company to Nvidia Corp.

Source: Bloomberg