A rough start to the week for Qualcomm stock following a week that brought some major bad news in the form of an FTC antitrust complaint and a one $1 billion or so suit from one-time ally Apple.
The chipmaker was already stumbling from an FTC complaint a week back that accused the company of instituting a “no license, no chips” policy that instituted higher fees and held down competitors, according to the commission. On Friday, Apple piled on, accusing Qualcomm of “exclusionary tactics and excessive royalties.”
While Qualcomm has stood firm, calling Apple’s accusations “baseless” and suggesting that the iPhone maker of “misrepresenting facts and withholding information” in order to help bring about charges from the FTC and around the world, Wall Street is seemingly troubled by the mounting accusations against the San Diego-based component manufacturer.
Qualcomm’s morning kicked off with a tumble, dropping 11-percent shortly after the bell this morning. The company says it looks forward to proving itself in court in the face of mounting blowback over monopolistic claims, but the company has already been hit with fines recently, including 1.03 trillion won ($853 million) from a South Korean antitrust regulator just before the end of the year.