Telstra 5G Partner Appealing Competition Ruling
Bloomberg reports US District Judge Lucy Koh ruled on Tuesday to uphold accusations the company engaged in anti-competitive business practices regarding prices for patent licensing after a trial earlier this year.
If the decision is upheld it could mean a price reprieve for Telstra, who has partnered with Qualcomm in deploying its 5G network.
Qualcomm would also be forced to renegotiate its contracts with major phonemakers like Samsung, Apple and Huawei relating to networking patents worth billions of dollars in high-margin revenue every year, as well as charge less to rival chipmakers using its patents.
Qualcomm is seeking to have the decision put on ice while it seeks support from the federal government, which considers the company vital to the country’s leadership in technology and security, as well as the rollout of 5G networks.
The licensing model Qualcomm uses has been subject to multiple challenges in several countries, and while decisions have often gone against Qualcomm, the company has been largely successful in past appeals and settlements.