Apart from using its own Exynos chips in its flagship of Galaxy S series handsets, Samsung has also made an exclusive use of QUALCOMM, Inc. (NASDAQ:QCOM) Snapdragon processors. Word has it that the same will be available on the upcoming Galaxy S8. However, Samsung’s Exynos chipsets may not find their way into phones from other companies.
Qualcomm is alleged to have blocked Samsung from selling its own mobile chips to device makers. According to South Korea’s Fair Trade Commission, which has taken Qualcomm to task indicates that the allegations are as a result of a cross-licensing deal.
Samsung is said not to have met its part of the bargain in cross-licensing deal
The two companies signed a deal more than two decades ago, within which Samsung would license some of Qualcomm’s standard essential patents. The selling of the chipsets had to be within Qualcomm’s subsidiaries. However, the revolution of Smartphones provoked Samsung to ask for the renegotiation of the terms of a proposal that Qualcomm did not take kindly.
All did not end well because the two could hardly agree. This put the South Korean manufacturer between a hard rock and not only hurting the company but also its consumers and manufacturers
Qualcomm speaks out on the allegations of having blocked Samsung
The South Korean regulator says that some of Qualcomm’s business practices are in violation of the Korean competition law. However, Qualcomm responds by citing, “Qualcomm has never stood in the way of Samsung selling chips to third parties, and nothing in our agreements has ever prevented Samsung from doing so.”
It is not the first time that the giant chipset vendor is brushing shoulders with the law. It has also had issues with Apple having been accused of resorting to anti-competitive tactics in an effort to keep its domination over key semiconductors. On the other hand, regulatory bodies have been scrutinizing Qualcomm’s practices in various counties, the likes of South Korea, China, and the EU.
In the meantime, Qualcomm’s stock was trading at $57.38 witnessing an increase of $0.72 or 1.27%.