FTC Appeals for En Banc Review in Antitrust Case Against Qualcomm
The FTC appealed for 9th U.S. Circuit Court of Appeals en banc review of its antitrust case against Qualcomm (see 2008190043). Siding with Qualcomm, the court “blesses the continued stifling of competition in multi-billion-dollar markets for cellular-communications chips on which…
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much of the digital economy depends,” the FTC filed Friday (in Pacer). The three-judge panel disregarded precedent by “elevating patent-law labels over economic substance,” by “holding that facially ‘neutral’ fees cannot violate” antitrust law, saying “harms to Qualcomm’s customers are ‘beyond the scope of antitrust law’ and demanding a showing of ‘direct’ harm to competitors," the FTC said. The errors “cast doubt on fundamental matters of antitrust principle and will encourage monopolists to cloak anticompetitive practices beneath false invocations of patent law,” the agency wrote. The company didn’t comment.