Apple Files $1 Billion Suit Against Qualcomm Over Phone Processors

The iPhone maker has alleged that the chip maker resorts to monopolistic practices in the market.

Apple Inc filed a $1 billion lawsuit against supplier Qualcomm Inc on Friday, days after the US government accused the chip maker of resorting to anti-competitive tactics to maintain a monopoly over key semiconductors in mobile phones.

Qualcomm is a major supplier to both Apple and Samsung Electronics Co Ltd for "modem" chips that connect phones to wireless networks.

The two companies together accounted for 40 percent of Qualcomm's $23.5 billion in revenue in its most recent fiscal year.

In the lawsuit filed in US District Court for the Southern District of California, Apple accused Qualcomm of overcharging for chips and refused to pay some $1 billion in promised rebates.

For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with.

Apple Statement

In addition to this, Apple also says that Qualcomm has refused to license the technology to other manufacturers to prevent them from making the chips.

Meanwhile, Qualcomm called Apple’s allegations "baseless."

Apple has intentionally mischaracterised our agreements and negotiations, as well as the enormity and value of the technology we have invented, contributed and shared with all mobile device makers through our licensing programme 

Don Rosenberg, Executive Vice President and General Counsel, Qualcomm

Apple designs the processors in iPhones and iPads but buys chips from Qualcomm to connect to 4G LTE and other cellular networks.

(With inputs from Reuters and IANS)