Apple claims that Qualcomm’s monopoly on smartphone chips is stifling innovation with high prices, and filed a complaint taking them to court in 2017 in an effort to reduce Apple’s fees.
Qualcomm’s business model relies on a myriad of patents and licensing payments for their smartphone technologies, and argues that their technology is more than just the chips, and that they have a right to ask for these fees, also accusing Apple of playing the legal system to get pay less.
The court battle between Apple and Qualcomm will likely be in the billions, and have a significant impact on the operations of the two companies, possibly changing Qualcomm’s pricing structures to comply with new regulatory laws.
The legal battle has started a number of additional investigations throughout the world, leading to €997m in fines for Qualcomm for supposedly breaching antitrust laws, which they’ve appealed stating that the case is “flawed.”
As a result of the court battle, Apple was also made to halt iPhone sales of models 7 and 8 in Germany and China, and in addition, a March court ruled that Apple infringed on three of Qualcomm’s battery life improvement technologies.
Author: Adam Sarwar