Qualcomm Hit With $647M Lawsuit In UK Over Alleged Royalty Abuse

Qualcomm (QCOM) is reportedly facing a £480 million ($647.07 million) lawsuit in London, U.K., filed on behalf of smartphone users, alleging that the chipmaker leveraged its market dominance to compel Apple (AAPL) and Samsung to pay inflated royalties.

According to a Reuters report, the case is being brought by the British consumer group Which?, whose lawyers claim that around 29 million individuals who purchased iPhones or Samsung devices since 2015 may be eligible for compensation.

The report added that the group claims Qualcomm enforced a 'no licence, no chips' policy globally, requiring manufacturers to pay inflated royalties even when its chips were not included in the devices.

Retail sentiment on Qualcomm remained unchanged in the ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits. Shares of Qualcomm were up marginally in afternoon trading.

According to the Bloomberg report, in court filings ahead of a five-week trial beginning on Monday, lawyers for Which? noted that Qualcomm’s practices function as “an industry-wide private tax,” boosting the company’s profits while driving up device prices.

The report stated that Qualcomm contends the lawsuit misrepresents its established policy, which requires manufacturers to secure licenses for its standard-essential patents before purchasing chipsets.

Qualcomm’s lawyers also dismissed Which?’s claim that the company could demand certain royalties from Apple and Samsung, who “can and do wield significant buyer power,” according to the report.

Qualcomm stock has gained over 10% this year and has risen 1.4% in the last 12 months. 

Exchange Rate: £1 = $1.35

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: White House Reportedly Denies Plans To Acquire Stake In Critical Metals

Share

·

Add us on