It’s not looking to be a good start of the year for Qualcomm. The chip supplier finds itself in a big lawsuit against Apple. The tech giant is seeking nearly US$1 billion in rebate payments, which Apple claims has been wrongfully withheld because of its cooperation with South Korean regulators investigating Qualcomm’s industry practices. Apple claims the chip maker is charging “excessive royalties” as well as an “unfair amount” for licensing of its cellular patents.
According to Apple’s released statement on for CNN, “To protect this business scheme, Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them.”
Qualcomm fires back with an issused statement to Reuters. Its General Counsel Don Rosenberg says Apple’s claims are “baseless.”
“Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information,” Rosenberg says in the statement. “We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”
South Korean regulators have fined Qualcomm nearly $850 million last month. They claim the chip maker is using its influence in the industry and has been forcing phone manufacturers into unfair patent licensing deals so they can use Qualcomm’s chips. This is also the same charge the U.S. Federal Trade Commission has against Qualcomm, saying the company has been pushing “onerous and anti-competitive supply and licensing terms” on phone makers.
