Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo illustration: Avishek Das/SOPA Images/LightRocket via Getty Images

Qualcomm isn't harming competition when it forces device makers to license its technology in order to use its chips, a federal appeals court ruled Tuesday.

Why it matters: The decision, which comes from a three-judge panel in California's Ninth Circuit, tosses out a 2019 district court ruling that cast uncertainty around Qualcomm's business model and therefore the future of the smartphone industry.

Catch up quick: Qualcomm has long used the practice, commonly known as its "no license, no chips" policy, to lock smartphone makers into paying for patent licensing before they can use Qualcomm chips.

  • The Federal Trade Commission in the waning days of the Obama administration sued Qualcomm over the practice, saying it hurt competition and amounted to an abuse of the firm's market power in the smartphone chip industry. That set in motion the court case leading to Tuesday's ruling.
  • The policy was also at the heart of a years-long legal battle between Qualcomm and Apple that the companies settled last year.

What they're saying: "Anticompetitive behavior is illegal under federal antitrust law. Hypercompetitive behavior is not," said Judge Conseulo Callahan, writing for the panel.

"Our job is not to condone or punish Qualcomm for its success, but rather to assess whether the FTC has met its burden under the rule of reason to show that Qualcomm’s practices have crossed the line to 'conduct which unfairly tends to destroy competition itself.' ... We conclude that the FTC has not met its burden."
— Judge Callahan
  • "The Court of Appeals unanimous reversal, entirely vacating the District Court decision, validates our business model and patent licensing program," Qualcomm general counsel Don Rosenberg said in a statement.

Qualcomm shares rose roughly 5% on the news.

What's next: Should it choose to pursue the case further, the FTC could ask the full Ninth Circuit to review the panel decision. It could also seek to take it all the way to the Supreme Court.

  • "The court’s ruling is disappointing and we will be considering our options," FTC Bureau of Competition director Ian Conner said in a statement.

Go deeper

Trump campaign loses yet another legal challenge in Pennsylvania

The president's lawyer Rudy Giuliani (center) has led legal efforts to cast doubt on election results, but few have succeeded. Photo: BRYAN R. SMITH/AFP via Getty

Philadelphia did not violate the law by restricting poll observers' proximity to ballots, the Pennsylvania Supreme Court ruled in a blow to the Trump campaign Tuesday.

Why it matters: This development comes after President Trump's defeat in a string of court battles, which his campaign wielded in several states in attempts to discredit President-elect Biden's election victory.

Facebook to lift political ad ban imposed after November election

Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images

Facebook will finally allow advertisers to resume running political and social issue ads in the U.S. on Thursday, according to a company update.

The big picture: Facebook and rival Google instituted political ad bans to slow the spread of misinformation and curb confusion around the presidential election and its aftermath.

Bryan Walsh, author of Future
23 mins ago - Technology

AI is industrializing

Illustration: Sarah Grillo/Axios

Artificial intelligence is becoming a true industry, with all the pluses and minuses that entails, according to a sweeping new report.

Why it matters: AI is now in nearly every area of business, with the pandemic pushing even more investment in drug design and medicine. But as the technology matures, challenges around ethics and diversity grow.