Qualcomm used illegal, anticompetitive practices to license patents for modems utilized in cell phones, a decide has dominated in a case introduced by the U.S. commerce regulator, ordering it to renegotiate main offers and alter the way it does enterprise.
Shares of the corporate, which have soared because it settled a significant and long-running licensing dispute with Apple Inc earlier this 12 months, sank 13% to $67.50 in buying and selling earlier than the bell.
In an in depth, 230-page ruling on the case introduced by the Federal Commerce Fee, U.S. District Decide Lucy Koh laid out an inventory of practices that she mentioned used Qualcomm’s dominant place available in the market to squeeze rivals out of contracts and power cell phone makers to pay extra for its patents.
She ordered that Qualcomm renegotiate licensing agreements with clients with out utilizing the specter of a halt in provides as a part of its ways, and at honest and affordable costs, including the corporate can be monitored for seven years to make sure it complies.
“Qualcomm’s licensing…
