Qualcomm is perhaps the first company that comes to your head when they talk to you about smartphone processors today. This position, unfortunately, may cost them dearly.
In fact, it was Apple who neither more nor less has sued Qualcomm for inflating the prices of its components and for refusing to pay a billion dollars, strategies considered “anticompetitive.” Apple asks $1bn in reimbursements to Qualcomm.
As we read in Routers, on Friday, Apple Inc. sued Qualcomm for $ 1 billion at the US District Court, days after another US government claim for “bad Anti-competitive tactics” to maintain its monopoly of processors.
Specifically, Apple spoke of “overcharging” chip prices and of Qualcomm’s refusal to pay a billion dollars in rebates that Qualcomm promised them. To all this, the semiconductor firm has not yet given any explanation.
In addition, the apple company adds in its statement that:
“In case that was not enough, Qualcomm tried to extort Apple to change its responses and provide false information to the KFTC (Korea Fair Trade Commission) in exchange for the release of Qualcomm payments to Apple, to which Apple refused .”
Qualcomm’s bad practices do not end here, but Apple also complains that Qualcomm sold components to Apple at a price more expensive than it did with other manufacturers, in addition to doing bad propaganda of the iPhone with Intel chipsets.
After all, it is another demand that adds to the long history of Qualcomm, which was already fined by the KFTC in December for 854 million euros. In 2015, for example, it was also indicted by the European Union and the United States CFC.
All this uproar may come from Apple’s decision to have Intel to manufacture the modem chips of the iPhone 7, a task that to date Qualcomm was the sole manager. This loss of contract, according to the source, was not so damaging to Qualcomm, as Samsung re-counted on them to manufacture their latest Galaxy S7.