DOJ weighs in on FTC’s case against Qualcomm

The Justice Department weighed in on a years-long legal battle between the Federal Trade Commission and Qualcomm, warning that the outcome in the case could hurt the ability of US companies to compete in 5G wireless technology. The Federal Trade Commission first sued Qualcomm in Jan 2017, claiming the maker of mobile phone technology violated antitrust rules in its licensing agreements with phone manufacturers. Qualcomm fought the charges at trial in Jan 2019, and US District Judge Lucy Koh has yet to make a ruling in the case. While the Justice Department did not argue directly against the merits of the FTC’s case, the filing could pit the two federal agencies against one another in a philosophical battle over how the inventors of new technology should be compensated, and how best to incentivize new technological development. The Justice Department said May 2 that, should Judge Koh rule in the FTC’s favor, it does not want the judge to make an immediate decision on the “remedies” in the case, or how Qualcomm should be punished for allegedly violating antitrust rules. Rather, the Justice Department wants the judge to hold hearings first, so that various parties can argue the best course of action. “There is a plausible prospect that an overly broad remedy in this case could reduce competition and innovation in markets for 5G technology and downstream applications that rely on that technology,” the Justice Department wrote in its filing.