The US Department of Justice is on the side of Qualcomm Inc.
QCOM, + 0.32%
to prevent the enforcement of antitrust laws against the chipmaker during the appeal proceedings. The company is important for national security. In documents filed on Tuesday, the Department of Justice said that the District Court's verdict "threatens competition, innovation and national security." In a related file, Ellen Lord, the Acquisition and Maintenance Department, said, "Qualcomm is a key player in both its trusted supply chain and innovation leader, and it would be impossible to replace Qualcomm's crucial role in 5G technology in the short term. "In May, a federal judge and the Federal Trade Commission ruled that Qualcomm violated antitrust laws through licensing practices that" strangle competition. " The San Diego-based company immediately appealed to suspend enforcement, arguing that the decision would force it to change its business model. This would be too difficult if the decision were annulled on appeal.