Qualcomm has monopoly power in two key chip markets, maintained by refusing licenses to rival chipmakers, the FTC argued to the 9th U.S. Circuit Court of Appeals (see 1910100017). Oral argument is set for 9:30 a.m. Feb. 13 in San Francisco. Qualcomm and DOJ said previously that the lawsuit and lower court’s injunction threaten national security, given Qualcomm’s role in leading 5G advancement against Chinese rivals. The FTC called those claims “purely speculative.” Intel supported the commission in the case, also announcing it agrees with the district court’s finding “Qualcomm’s licensing practices have strangled competition in the CDMA and premium LTE modem chip markets for years, and harmed rivals, OEMs and end consumers.” Intel claims it “suffered the brunt of Qualcomm’s anticompetitive behavior, was denied opportunities in the modem market, was prevented from making sales to customers and was forced to sell at prices artificially skewed by Qualcomm.” Ericsson and Samsung previously argued in favor of Qualcomm, with Samsung saying contract and patent law are “better suited” for settling disputes about fair, reasonable and nondiscriminatory (FRAND) terms. American, Japanese and German automaker groups said prices of cars with 5G will likely increase if Qualcomm wins. The Alliance of Automobile Manufacturers and Denso with Continental Automotive Systems filed briefs. “Automakers have been forced into unnecessary and inefficient [standard-essential patent] licensing negotiations ... even though chip sales that exhaust patent rights ... would negate the need for such negotiations while allowing the patentee to be compensated for its inventions based on the price charged for a chip,” the alliance argued. That will worsen if Qualcomm practices are ratified, it said. The Computer & Communications Industry Association supports the agency, saying Qualcomm has an “antitrust duty” to license competing chip manufacturers on FRAND terms. Open Markets also supported the FTC, saying in a release that Qualcomm practices compel “smartphone and tablet producers to pay exorbitantly high amounts for their chips.” The company didn’t comment Monday. The 9th U.S. Circuit Court of Appeals scheduled Feb. 10 oral argument on challenges of FCC wireless infrastructure orders (see 1912020018).
Karl Herchenroeder
Karl Herchenroeder, Associate Editor, is a technology policy journalist for publications including Communications Daily. Born in Rockville, Maryland, he joined the Warren Communications News staff in 2018. He began his journalism career in 2012 at the Aspen Times in Aspen, Colorado, where he covered city government. After that, he covered the nuclear industry for ExchangeMonitor in Washington. You can follow Herchenroeder on Twitter: @karlherk
Google’s decision to limit political advertising microtargeting is a better approach than Facebook’s decision not to fact-check political ads, Sens. Mark Warner, D-Va., and Ed Markey, D-Mass., said in interviews last month. Sens. Brian Schatz, D-Hawaii; Josh Hawley, R-Mo.; and John Kennedy, R-La.; said Google’s updated policy is a mistake.
Senate Judiciary Committee Chairman Lindsey Graham, R-S.C., is “OK” with permanently reauthorizing USA Patriot Act Section 215, except one provision: the call detail records program (see 1911120042), he told us. President Donald Trump signed a short-term funding bill through Dec. 20 on Nov. 21, extending the law through March 15, three months after the original December expiration.
Led by Senate Commerce Committee ranking member Maria Cantwell, Wash., Senate Democrats Tuesday unveiled federal privacy legislation. It has a provision Chairman Roger Wicker, R-Miss., regards as a nonstarter (see 1911250058).
Senate Commerce Committee Chairman Roger Wicker doesn’t think Democrats will insist on including a private right of action in bipartisan privacy legislation, he told reporters last week. The Mississippi Republican noted California’s privacy law limits private right of action. “I don’t think Democrats will insist on that in a final bill,” he said. “I don’t expect this Congress to move to the left of the California initiative.”
New York should pass a state privacy law to set proper standards and push federal legislators to take action, Senate Democrats told a hearing. Industry opposed including a private right of action. Consumer advocates applauded the provision.
The National Highway Traffic Safety Administration will establish safety standards for autonomous vehicles (AV) when the technology is “proven,” acting Administrator James Owens told Congress Wednesday. Industry is making significant adjustments to the technology, and the agency doesn’t want to stymie innovation, he said during a Senate Commerce Committee hearing.
Ranking Democrats on four Senate committees are exploring privacy legislation, Sen. Sherrod Brown, D-Ohio, told us Tuesday, the day after the group introduced related principles (see 1911180054). “We will likely move forward with [a bill], but we’re talking to Republicans about it, too,” the Senate Banking Committee ranking member said.
The FTC's probing major platforms other than Facebook, which is under antitrust investigation, Chairman Joe Simons said Monday. He expects the Competition Bureau’s Technology Enforcement Division, which is “burning the candle at both ends,” will be successful, he said at an American Bar Association antitrust event.
Facebook supports industry setting content moderation standards, said Public Policy Manager Lori Moylan Friday. Speaking at a George Mason University Antonin Scalia Law School event, she said companies should collaboratively define terms like manipulated media and deepfake.