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Apple sues Qualcomm for $1bn, Qualcomm happy to unveil Apple's secrets in court

Staff Writer | January 21, 2017
Apple filed a $1 billion lawsuit against supplier Qualcomm, a major supplier to both Apple and Samsung Electronics for modem chips that connect phones to wireless networks.
Apple Qualcomm
Technology   Qualcomm allegedly withheld the rebates
The two companies together accounted for 40 percent of Qualcomm's $23.5 billion in revenue in its most recent fiscal year.

In the lawsuit filed in U.S. District Court for the Southern District of California, Apple accused Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates.

Apple said in its complaint that Qualcomm withheld the rebates because of Apple's discussions with South Korea's antitrust regulator, the Korea Fair Trade Commission.

"If that were not enough, Qualcomm then attempted to extort Apple into changing its responses and providing false information to the KFTC in exchange for Qualcomm's release of those payments to Apple. Apple refused," Apple said in its lawsuit.

In a statement, Qualcomm General Counsel Don Rosenberg called Apple's claims "baseless."

"Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information," Rosenberg said in the statement, Reuters reports.

"We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”


 

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