Qualcomm faced another lawsuit earlier, but this time the lawsuit was filed not by Arm or other industry players, but by the British consumer rights organization Which?, which accused Qualcomm of long-term unfair licensing conditions, causing Apple and Samsung to pay excessive technology licensing fees, making the prices of mobile phone products using its technology licensed designs higher, and then passing the costs on to consumers.
British BBC News report claimsConsumer rights group Which? has filed a lawsuit against Qualcomm at the Competition Appeal Tribunal in London, accusing the US chipmaker of forcing Apple and Samsung to pay excessive licensing fees through unfair licensing terms, thereby driving up smartphone prices.
If Qualcomm ultimately loses the case, it may have to pay 4.8 million pounds (about NT$195 billion) in compensation, and about 2900 million British iPhone and Galaxy phone users will be eligible for compensation, with an average of about 17 pounds (about NT$680) per person.
The lawsuit focuses on whether Qualcomm uses its dominant position in the mobile chip market to adopt unreasonable patent licensing and component pricing strategies against Apple and Samsung.
Which? argues that these additional costs are ultimately passed on to consumers, creating a "hidden price increase." The trial, which will begin on October 6th and last five weeks, will further discuss how to allocate compensation if the court finds Qualcomm engaged in monopolistic behavior in the second phase.
Qualcomm has yet to officially respond to the allegations, but has repeatedly called the case "baseless." Qualcomm emphasized that its patent licensing and chip business complies with international standards and is an integral part of the smartphone ecosystem.
However, this is not the first time Qualcomm has faced antitrust controversy.It was fined a large sum, but the ruling was overturned earlier by Europe's second highest court., Canada also has a similar class action lawsuit, and the U.S. Federal Trade Commission (FTC) also sued Qualcomm in 2017, but failed to prove that its actions violated fair competition laws.Ultimately lost the case in 2020.
Anabel Hoult, CEO of Which?, said the lawsuit was a testament to consumer power, holding global tech giants accountable when they abuse their market dominance. She stressed that if successful, it would be a significant milestone for consumer protection in the UK.
Currently, the case is only being brought on behalf of consumers who purchased Apple or Samsung smartphones in the UK between October 1, 2015, and January 9, 2024. If the compensation is awarded, consumers will receive the benefits directly without having to file an application themselves.
Regardless of the final outcome, this case highlights the smartphone industry's heavy reliance on a small number of core technology suppliers. If suppliers abuse their patents and market position, not only will brand manufacturers suffer, but consumers will ultimately pay the price. As regulatory oversight in many countries around the world intensifies, the transparency and fairness of chip giants' licensing models will inevitably become a focus of increasing judicial and regulatory scrutiny.
