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Apple sues Qualcomm in China over iPhone modem chip licensing term

collected by :Clara William

Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them.
In response to the new lawsuit, Qualcomm today issued its own press release and noted that Apple is claiming the company is in violation of China’s Anti-Monopoly Law.
That followed an earlier FTC complaint that alleged Qualcomm engaged in monopolistic practices to prevent Apple from sourcing key components from Qualcomm’s competitors.
It also claimed that Apple is “encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world.”
The new case in China follows a very similar and related lawsuit launched in a California federal court and reported last week.

referring toApple sues Qualcomm in China over iPhone modem chip licensing terms

Apple has expanded its legal actions against Qualcomm’s broadband modem chip licensing tactics in China’s Intellectual Property Courts, and is seeking 1 billion yuan ($145.3 million) in damages based on iPhone sales in China alone.
“Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them.
Both Apple and the FTC have claimed that Qualcomm forced Apple into an exclusive chip supply deal between 2011 and 2016, making that the condition of rebates.Qualcomm has been found guilty in China of market power abuse in the past.
“These filings by Apple’s Chinese subsidiary are just part of Apple’s efforts to find ways to pay less for Qualcomm’s technology,” Qualcomm general counsel Don Rosenberg said in a statement to Reuters.
In a filing on Wednesday, Apple is alleging the same thing that it has in its suit against the chip manufacturer in the U.S. Apple asserts the Qualcomm is abusing its dominant market position in China to effectively extort unfair licensing fees out of the iPhone manufacturer, and is seeking recompense, and a cessation of potentially illegal licensing tactics.

 

referring to

Qualcomm Fights Back Against Apple In Earnings Call, Accuses iPhone Maker Of Deceiving Regulators

Qualcomm Fights Back Against Apple In Earnings Call, Accuses iPhone Maker Of Deceiving Regulators

“We simply objected to Apple making false and misleading statements, and withholding information, to motivate attacks against Qualcomm,” Aberle said.
“Apple’s attack on Qualcomm’s business model is not only an attack on Qualcomm,” Aberle said, “but also an attack on the smartphone competition that Qualcomm’s business model enables.”
As far as the actual earnings report goes, Qualcomm made out alright: first quarter revenue of $5.99 billion and earnings of $1.19 per share.
On the earnings call, Qualcomm accused Apple as instigating government investigations from the United States Federal Trade Commission (filed last week) and the Korea Fair Trade Commission.
Nearly every modern phone in the world has to pay Qualcomm’s licensing fees.

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