Trump’s allies warn Obama-era FTC lawsuit against the U.S. company give a boost for China

A FTC case against Qualcomm has critics warn it could lift China to a time when the trump administration pursued a hard policy towards Beijing.

An obscure Federal lawsuit against the American tech company Qualcomm has created in the last days of the Obama administration’s fresh concern among the conservatives, the case is accidentally to help China at a time when the trombone White house hard-line policy toward Beijing.

The antitrust case, originally brought against Qualcomm by the independent Federal Trade Commission in January 2017, just went to court last week. Curiously, the government’s witness used a controversial Chinese telecommunications giant Huawei Technologies, a move that has outraged and baffled many supporters of President Trump, accusing China of stealing US technology and use of the American market.

“We have a President-administration, on the one hand, talk about Huawei as a threat to national security and steal our intellectual property,” Jenny Beth Martin, a conservative columnist and co-founder of the Tea y patriots, told Fox News. “On the other hand, we have the FTC, a representative of Huawei to the witness stand to testify against an American company.

“It is a contradiction, and I don’t understand it,” Martin added. “We have two parts of government working against itself.”


The FTC case centers around a claim that Qualcomm threatened to withhold chip offers for companies ranging from the Beijing-backed Huawei and Lenovo to the Americans-brands such as Intel and Apple, unless it is to pay this company more for what it says are unreasonable royalties for the licensing of the technology.

“Qualcomm’s behaviour on competition and the competitive process has been harmed,” the FTC said in its complaint. “At a time when cellular technologies to expand to new and varied applications, Qualcomm’s practices more and more consumers threaten to damage in an industry in which competition and innovation are of crucial importance.”

In a video deposition last week, played in court, Huawei’s General Counsel, Nanfen Yu said Qualcomm informed the Chinese company that it would stop supplying chips, unless Huawei license renewed agreement with Qualcomm.

A representative for the Hong Kong-based Lenovo Group, argued in a video deposition that Qualcomm delayed in the past either, or the supply of chips to customers who have challenged its legal provisions.


Due to the ongoing partial government non-shutdown, the FTC was not available to comment on Fox News for this report.

The FTC is the argument that Qualcomm is allegedly violate competition, but it has frustrated some conservatives, who say that it is not only the independent Agency is favoring the Chinese interests to American business, but the FTC case goes against the ideas of free market capitalism.

“From an economic point of view, we need to be based against the Marxist -, Mercantile policy, and to win the free markets,” said Dan Schneider, executive director of the American Conservative Union, told Fox News. “But this whole case against Qualcomm is actually against the free market capitalism.”


To place lawyers for Qualcomm, including the claims, forcing the company to strong arm tactics to their buyers in the signing of the licensing contracts or to scare them from demanding the company to court.

“The primary Complainant in this case are sophisticated companies that have their own benefits, and used it,” Qualcomm’s lawyers said in a pretrial briefing. “They include some of the world’s largest and most profitable companies: Apple, Samsung, Huawei, and others. These are not companies that push Qualcomm, and Qualcomm was hardly in a barrel.”

The lawyers added: “In addition, in its zeal to hobble the quintessence of the American technology company—without a shred of evidence in relation to anti-competitive effects, the FTC risks an opening for Huawei offers dominate the 5G technology, and stifling innovation only when it is needed most.”


Last March, the United States for the acquisition of a Qualcomm-according to the recommendation by the Committee on Foreign investment in the United States, blocked the movement of the company’s leading Position in the 5G technology would be a barrier to said and open a path for Huawei one of the leading players in the field. With the current legal dispute, are the critics who say that China is benefiting greatly, when the judge decides to rule against Qualcomm.

“If the case goes to like in the FTC, this ends up as a big win for the Chinese companies and China-and a big loss for Qualcomm,” said Martin.

In terms of Huawei, have been concerns about the Chinese company. the own intentions in the Wake of the recent arrest in Canada – and possible extradition to the United States – the chief financial officer, and the founder’s daughter, Meng Wanzhou The arrest came amid allegations that Huawei has used a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. U.S. officials say that Meng and Huawei deceived banks about the company’s business relationships in Iran.

Huawei was founded in 1987 by a former military engineer, and is crucial to Beijing’s efforts to transform China into a technology leader. It is China’s largest corporate research and development budget to 89.7 billion yuan ($13 billion) in 2017, 10 percent more than Apple Inc.’s — and many in the both the national security and technology fields, as the heart of Beijing’s technology ambitions and a key player in its cyber espionage efforts.


While Huawei is a former FTC Commissioner from the pen of a rare dissent, as the decision to file Qualcomm complaint was initially detailed their concerns that the case would harm the efforts of the United States for the protection of intellectual property rights.was not named directly,

“I have a special situation: the implementation of measures brought due to an error of legal theory … the missing economic and supporting evidence, on the eve of a new presidential administration, and that, by its very exhibition undermines the U.S. intellectual property rights in Asia and around the world,” former FTC Commissioner Maureen Ohlhausen wrote. “These extreme circumstances force you to agree with me, my objections.”

It is unclear whether President Trump, dated currently locked in a battle with the Democrats in Congress over the border-wall-financing, too, is aware of the lawsuit back, just a few days before his inauguration. The White house has not responded to a request for comment on the case.

But all move back to draw at this stage could be difficult, as FTC Chairman Joseph Simons recused himself from the case, because prior to that, he worked for a law firm, had Qualcomm as a customer. The strike means to refuse any bid, to fall would, on a party-line vote between the remaining two Republicans and two Democrats in the Commission.

“I don’t assume that the President is aware of the fact that the Obama-era priorities are still said followed in the case of the FTC,” Schneider said. “The President could instruct Simon to recuse himself from this case, and then you have the three Republican commissioners on this case.”

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