Qualcomm Accuses Arm Of Antitrust Violations Across US, EU, And Korea Over Chip Access

Qualcomm Inc QCOM launched a formal anticompetitive movement against supplier Arm Holdings Plc ARM on Tuesday for alleged anticompetitive behavior on three continents.

Qualcomm filed a complaint against Arm against the European Commission, U.S. Federal Trade Commission, and Korea Fair Trade Commission for allegedly restricting access to its technology after operating an open network for over two decades, Bloomberg reported, citing unnamed sources familiar with the matter.

Qualcomm alleged that Arm’s open licensing model created a huge dependence on its technology and threatened market dynamics.

Also Read: Softbank-Backed Arm Holdings 155% Post-IPO Surge Bolstered by AI Growth and Smartphone Integration

The British chipmaker blocked access to boost profits through its chipmaking ambitions. Arm denied the allegations.

The legal tension between the semiconductor chip companies highlights intense rivalry amongst the companies to grab a larger pie associated with the artificial intelligence frenzy.

In December 2024, a federal jury in Delaware ruled that Qualcomm did not violate its licensing agreement with Arm.

Qualcomm’s chips power Android smartphones and tablets, generating a large portion of the company’s $39 billion revenue.

Recent reports indicated that Arm’s foray into the chip sales market directly competes with its clients, including Qualcomm and Nvidia Corp NVDA, for AI and data center chip deals.

Arm reportedly competes with Qualcomm to supply Meta Platforms Inc META with data center CPUs.

Reportedly, Arm planned to boost prices by up to 300% and has discussed manufacturing its chips. It aims to increase annual smartphone revenue by ~$1 billion over a decade, a strategy dating back to 2019.

Arm recorded over 90% market share within the mobile applications market and a 65% share of the Internet of Things and embedded computing markets globally in 2022, as per Statista.

Price Action: At the last check on Wednesday, QCOM stock was down 0.73% to $158.97. ARM is up 4.39%.

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