Qualcomm Wins Ninth Circuit Appeal in California Antitrust Case

Chipmaker Qualcomm Inc. has secured a legal victory in an antitrust case concerning its business practices, as the Ninth Circuit Court of Appeals largely upheld a lower court’s decision to dismiss claims brought under California’s antitrust laws.

According to Bloomberg, the consumer plaintiffs alleged that Qualcomm’s “no license, no chips” policy, which requires manufacturers to obtain a license to Qualcomm’s patents before purchasing its modem chips, violated the California Cartwright Act. However, the appeals court ruled that the district court was correct in rejecting these claims.

Per Bloomberg, the Ninth Circuit’s ruling pointed to similarities between the plaintiffs’ arguments and those made in an earlier Federal Trade Commission (FTC) case against Qualcomm. The FTC had previously accused the company of engaging in anticompetitive behavior through its licensing policies and exclusive agreements with major device manufacturers such as Apple and Samsung. The consumer plaintiffs’ claims largely mirrored those in the FTC case, which was ultimately unsuccessful.

Related: Qualcomm Secures Partial Victory in Licensing Dispute with Arm, Jury Splits on Key Issues

Judge Ryan D. Nelson, writing for the panel, stated that the plaintiffs’ state law claims failed for many of the same reasons as the FTC’s allegations. The Ninth Circuit panel affirmed the district court’s partial dismissal and partial summary judgment in favor of Qualcomm, though it did vacate a portion of the ruling.

This decision reinforces Qualcomm’s long-standing position that its licensing and sales practices comply with antitrust laws. While critics have argued that the company’s policies stifle competition, courts have consistently sided with the chipmaker in recent legal battles.

The ruling represents another setback for consumer plaintiffs seeking to challenge Qualcomm’s business model under state and federal antitrust laws.

Source: Bloomberg