Qualcomm Says It Didn’t Wield Monopoly Power in Baseband Processors

Qualcomm denies the allegations in a second amended consolidated antitrust class action that it acquired or maintained “monopoly power” in the market for smartphone baseband processors, and that its conduct “was lawful, pro-competitive, and based on legitimate business and economic justifications,” said its answer Monday (docket 3:17-md-02773) in U.S. District Court for Northern California in San Francisco. The plaintiffs are four California consumers who allege Qualcomm exploited its position as the dominant global provider of modem chips, and allege the costs of its unlawful conduct were then passed on to consumers via inflated smartphone prices. Qualcomm also denies it entered into illegal tying agreements “that unreasonably restrained trade,” said its answer. The plaintiffs aren’t entitled to injunctive relief “on conduct that occurred solely in the past,” it said. Theirs “are not properly maintainable as a class action,” because the plaintiffs and members of the proposed class “waived such treatment in agreeing to binding individual arbitration,” it said.