Qualcomm Inc. illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees, a U.S. judge ruled, a decision that could force the company to overhaul its business practices.
The decision issued late Tuesday night by U.S. District Judge Lucy Koh in San Jose, California, caused Qualcomm shares to plunge 10.6 percent 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.