Qualcomm, a U.S.-based semiconductor and wireless technology company, is facing a $646.8 million lawsuit in London alleging that it abused its dominant market position to charge inflated royalties to smartphone manufacturers Apple and Samsung. The case, brought by the British consumer group Which?, claims that around 29 million consumers who purchased iPhones or Samsung devices since 2015 may be entitled to compensation.
The group alleges Qualcomm’s “no licence, no chips” policy required manufacturers to pay excessive fees even for devices that did not use the company’s chips, calling it “an industry-wide private tax which ensures higher profits for Qualcomm and inflates the cost of devices.” The five-week trial began on Monday at the UK’s Competition Appeal Tribunal.
Qualcomm has rejected the allegations, stating that Which? has mischaracterized its long-standing licensing model. The company’s legal team said the policy ensures fair access to its standard essential patents and argued that Apple and Samsung “can and do exert enormous buyer power.” The court will first determine whether Qualcomm is liable to the claimant class, with a separate trial to assess damages if Which? succeeds. A similar lawsuit filed in California challenging Qualcomm’s patent licensing practices was dismissed in 2023.
