Apple sues chip-maker Qualcomm in China

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Apple sues chip-maker Qualcomm in China

Qualcomm logoPicture copyright Getty Photographs
Picture caption Qualcomm provides modem chips for probably the most widely-used smartphones

Apple has filed a lawsuit towards Qualcomm in China looking for 1bn yuan (£115m) in damages, claiming the chip maker has abused its market place.

Apple has additionally filed a second case alleging Qualcomm had damaged the phrases of a deal masking how Apple might use applied sciences it had licensed.

Qualcomm stated it was able to defend its enterprise practices in courtroom.

The lawsuits come quickly after US regulators sued Qualcomm, alleging that the agency was responsible of market abuse.

In its authorized papers, Apple stated Qualcomm was utilizing its dominant place as a provider of communication chips for cell phones to squeeze additional cash from companies that use its applied sciences.

Within the second authorized case, Apple stated that Qualcomm had denied it entry to chip applied sciences it was entitled to underneath the phrases of an agreed licensing deal.

In a statement, Qualcomm stated it had not but seen all the small print of the 2 instances.

"These filings by Apple's Chinese language subsidiary are simply a part of Apple's efforts to seek out methods to pay much less for Qualcomm's know-how," stated Don Rosenberg, head lawyer for Qualcomm.

He added that Apple was provided phrases and circumstances that have been drawn up in 2015 following a ruling by Chinese language commerce regulators that dictated how Qualcomm ought to cope with corporations eager to make use of its modem chips.

Greater than 100 Chinese language companies signed as much as these phrases and circumstances, he stated, including that Apple "refused to even think about them".

"Qualcomm is ready to defend its enterprise mannequin anyplace on the earth," stated Mr Rosenberg.

Authorized battles

Final week, the US Federal Commerce Fee sued Qualcomm claiming it had abused its dominance in modem chips for cell phones. The FTC stated Qualcomm's use of low licensing charges was serving to it to implement its monopoly.

In response, Qualcomm stated the FTC grievance was based mostly on a "flawed authorized concept" and "vital misconceptions" about the best way the cellular business labored.

Quickly after the FTC filed its grievance, Apple adopted up with its personal authorized motion looking for $1bn (£793m) in rebates and accusing Qualcomm of overcharging it for chips.

Qualcomm stated it deliberate to struggle each authorized instances.

The chip-maker has been hit with authorized challenges and regulatory motion around the globe over the previous few years.

In December 2016, South Korean regulators fined it 1.03trn gained (£698m) for breaking competitors legal guidelines.

In 2015, it paid a $975m (£775m) effective in China following an anti-trust probe. The European Fee has additionally accused it of anti-competitive practices.

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