US judge says Qualcomm violated antitrust law; appeal planned, shares fall

The decision followed a 10-day non-jury trial in January, and is a victory for the US Federal Trade Commission, which has accused Qualcomm in 2017 of violating antitrust law

Qualcomm Inc illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees, a US judge ruled, a decision that could force the company to overhaul its business practices.

The decision issued late Tuesday night by US District Judge Lucy Koh in San Jose, California, caused Qualcomm shares to plunge 11.4 per cent on Wednesday.

"Qualcomm's licensing practices have strangled competition" in parts of the chip market for years, harming rivals, smartphone makers, and consumers, Koh wrote in a 233-page decision.

She ordered the San Diego-based company to renegotiate licensing agreements at reasonable prices,