Intel Says It Sold Its Modem Business to Apple at a ‘Multi-Billion Dollar Loss’ Because Qualcomm ‘Strangled Competition’

Stephen Nellis, reporting for Reuters:

Intel made the claims in a brief filed with the 9th U.S. Circuit Court of Appeals, where Qualcomm is seeking to overturn a sweeping antitrust decision against it after losing a lawsuit by the U.S. Federal Trade Commission. Intel, whose executives testified at the trial, argued on Friday that the ruling should stand. Appeal proceedings are expected to begin in January.

One reason Apple might have been able to buy Intel’s cellular modem team at a discount: who else was even bidding?

The final paragraph of this report is a bit odd, though:

Qualcomm has denied the FTC’s accusations, and other parts of the U.S. government urged the appeals court to pause enforcement of the FTC ruling against it. In July, the Pentagon and the Department of Energy said Qualcomm was a “trusted” supplier of 5G technology and would be “impossible to replace” in the short term if put out of business.

The ludicrous implication here is that the Pentagon and DOE think if Koh’s ruling stands, Qualcomm will be forced out of the 5G business. That seems utterly nuts.

Sunday, 1 December 2019