Cozen O’Connor: Why the FTC Thinks You Pay Too Much for Smartphones

Why the FTC Thinks You Pay Too Much for Smartphones

Saturday, January 12, 2019

David Reichenberg, a member in the firm's Antitrust Practice Group, was quoted in F3News' article "Why the FTC Thinks You Pay Too Much for Smartphones." The Federal Trade Commission thinks consumers are paying too much for smartphones. The agency blames Qualcomm, which owns key wireless-technology patents and makes chips that can be can be found in most high-end Android phones and many iPhones. Qualcomm says that it faces more competition in the chip market than ever, and in its legal brief cites a 34 percent drop in the average smartphone price between 2010 and 2017 as evidence that it hasn't harmed competition. Qualcomm also says its market share has declined in the past year as new competitors like Intel, MediaTek, and Samsung have gained ground in the wireless chip business. That may be the company's best defense, says David. He believes Qualcomm should try to rebut the FTC's argument that phone prices are too high and that innovation has been harmed.

To read the full article, click here