Qualcomm slides after LG and the FTC push back against its attempt to postpone an antitrust ruling
- Qualcomm's request for an antitrust ruling to be delayed was opposed by both LG Electronics and the Federal Trade Commission.
- The ruling, made by US District Judge Lucy Koh, would require Qualcomm to make significant changes to its chip business.
- Antitrust pressure on the tech industry has risen in recent months as the Department of Justice and Federal Trade Commission reached an agreement over jurisdiction.
- Watch Qualcomm trade live.
Qualcomm's push to delay a landmark antitrust ruling has been opposed by LG Electronics and the Federal Trade Commission, sending shares sliding by 1.84% early Wednesday.
Qualcomm requested that a ruling made on May 21, which would make it license its patents to rival chipmakers rather than phone manufacturers, by US District Judge Lucy Koh be delayed while it files for an appeal. Qualcomm's agreement with LG expires on June 30.LG Electronics opposed the request, saying it may allow Qualcomm to pressure it into another unfair deal. The Federal Trade Commission also came out against a delay, arguing it was in the public interest to uphold the decision as an appeal could last years.
Qualcomm said that in order to comply with Koh's decision the company would have to make changes that might be irreversible if an appeal is successful.
Tuesday evening's decision comes as the federal government has begun to divy up other major tech companies for antitrust oversight. In early June, The Washington Post reported that Amazon will fall under the FTC's jurisdiction, while the Department of Justice will have oversight of Google.
During a speech in Tel Aviv, Israel, on Tuesday, Makan Delrahim, a top DOJ official, said the department has the means to enforce current antitrust laws on companies like Google, Amazon, and Facebook.
"We already have in our possession the tools we need to enforce the antitrust laws in cases involving digital technologies," Delrahim said. "US antitrust law is flexible enough to be applied to markets old and new."
Qualcomm is up 26.63% this year.