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Apple buys the modem chip business from Intel

Intel announced that it has sold its smartphone modem chip business to Apple at a loss of several billion dollars after it was allegedly forced out of the market by Qualcomm.

Intel's attorney Steven R. Rodgers said the chipmaker had been forced out of the market by Qualcomm's patent licensing practices, arguing that the decision against the company must be upheld:

"We have billions invested, thousands hired, acquired Two companies have developed world-class innovative products that have eventually entered Apple's industry-leading iPhones, including the recently released iPhone 11. But ultimately, Intel could not overcome the artificial and insurmountable barriers to fair competition was launched by Qualcomm and had to be taken off the market this year.

Qualcomm, however, appealed the verdict and will not enforce it until the appeal is completed.

Intel vs. Qualcomm

Already in May, US District Judge Lucy Koh wrote a 233-page report in San Jose The decision in which it stated that Qualcomm's patent licensing practices had "strangled" competition in the market for modern chips. Koh then ordered that the company should renegotiate its license agreements more appropriately.

Qualcomm denied the FTC's allegations, and other parts of the US government even called on the Court of Appeals to suspend the execution of the FTC ruling against the company.

The replacement of Qualcomm, however, will not be as easy as both the Pentagon and the Department of Energy said in July that Qualcomm was a "trusted" provider of 5G technology and that the company could not be "replaced" in the short term

Intel's contract will be filed with the Ninth US Court of Appeals, where Qualcomm is currently seeking to overturn an antitrust decision following a US Federal Trade Commission complaint.

Via Business Insider

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