From its inception, the FTC’s case has been irreparably flawed, lacking any plausible theory of competitive harm.
The evidence at trial from both the industry and renowned economists showed that the FTC’s theory is inconsistent with the real-world facts. Mobile handset makers repeatedly testified that Qualcomm had the best chips available, while even Intel testified that Qualcomm R&D drives the pace of cellular innovation. This is the very essence of competition – innovation and superior products.
Qualcomm proved that its success in the mobile chip industry has been driven by superior technology, skill, and foresight. Contrary to the FTC’s claims, Qualcomm’s licensing model promotes, rather than harms, competition in the mobile chip industry, and more broadly the global mobile industry is thriving and competitive.
The FTC’s case and the court’s ruling defy long-standing antitrust law and ignore the vast weight of real-world evidence presented at trial. The agency demonstrated no harm to competition, while other testimony portrayed a chip market that is thriving, dynamic, and innovative with intense competition, declining prices, improved chip performance, and declining Qualcomm market share. Qualcomm looks forward to the opportunity to be heard on appeal.