Qualcomm Now Facing Lawsuit From U.S Regulators in Addition to Ongoing Apple Feud - MacRumors
Skip to Content

Qualcomm Now Facing Lawsuit From U.S Regulators in Addition to Ongoing Apple Feud

by

In January, the United States Federal Trade Commission filed a complaint against Qualcomm that accused the company of using anticompetitive tactics to remain the dominant supplier of baseband processors for smartphones, violating the FTC Act. This week, U.S. District Judge Lucy Koh of San Jose, California ruled that the FTC's antitrust lawsuit against Qualcomm can proceed, forcing the supplier to face legal battles both from U.S. regulators and in an ongoing $1 billion lawsuit from Apple (via Reuters).

Judge Koh denied Qualcomm's motion to dismiss the FTC's lawsuit, because the FTC had so far "adequately alleged" anticompetitive tactics were being used by Qualcomm. Don Rosenberg, executive vice president and general counsel of Qualcomm, said that the "FTC will have the burden to prove its claims, which we continue to believe are without merit."

qualcomm iphone 7

The Federal Trade Commission's antitrust lawsuit against Qualcomm Inc can proceed, a federal judge ruled late on Monday, meaning the iPhone chip supplier must now wage a fight with U.S. regulators even as it contests a separate $1 billion lawsuit filed by Apple Inc.

The FTC highlighted Qualcomm's "no license, no chips" policy under which the San Diego company refuses to sell chips unless customers also sign a patent license agreement and pay Qualcomm fees. Qualcomm refused to grant licenses to its rivals in order to keep a monopoly, the FTC alleged.

Although a final ruling is still far away, Rosenberg mentioned that Qualcomm looks forward to "further proceedings in which we will be able to develop a more accurate factual record." In response to the FTC's original complaint from January, Qualcomm cited a "flawed legal theory, a lack of economic support, and significant misconceptions about the mobile technology industry" in its first legal defense.

For Apple's lawsuit, the Cupertino company sued Qualcomm for $1 billion days after the FTC filed its first complaint in January, arguing the company had charged unfair royalties for "technologies they have nothing to do with." As the case continued throughout the year, in mid June Apple broadened its claims against Qualcomm, stating that Qualcomm wrongly bases its royalties on a percentage of the entire iPhone's value, despite supplying just a single component of the device.

Referred to as Qualcomm's "double dipping, extra reward system," Apple argued that these tactics were the same kind that the U.S. Supreme Court recently forbade in a lawsuit between Lexmark and a small company reselling its printer cartridges. After Qualcomm set its sights on four major Apple suppliers for failing to pay royalties on the use of Qualcomm's technology in the assembly of Apple's devices, Apple said that Qualcomm had revealed "its true bullying nature."

Top Rated Comments

djcerla Avatar
122 months ago
The free lunch is over.
Score: 6 Votes (Like | Disagree)
122 months ago
Many companies and nations do this but we need to look at the real threats and that one is communist china being allowed to steal, cheat, buy and move out.
So America should ignore indigenous corporate rule-breaking because China?

No, the US should apply its law consistently across all companies, foreign or domestic.

If your point is that the US' FTC is ignoring Chinese-company monopolies, fine, but that does not absolve Qualcomm. (Or Apple. Or Google, Amazon, Microsoft, Facebook...)
Score: 4 Votes (Like | Disagree)
122 months ago
Many companies and nations do this but we need to look at the real threats and that one is communist china being allowed to steal, cheat, buy and move out.
if u were in the academia, you would have seen how fast china is coming up with fundamental and applied research as well as engineering. give it another 5-10 years... if there is no world war III, china will lead the world in innovation.
Score: 4 Votes (Like | Disagree)
maflynn Avatar
122 months ago
This has now open a pandora's box that has me worried for the safety of this American company. I wonder if this is deliberate.
You reap what you so, and it seems they've gotten greedy. If they're smart, they'll start settling the cases with the government and apple, otherwise it will be a very long and drawn out ordeal for them (and expensive). Hard to be focused as a company when you're spending so much to focusing on suing or being sued
Score: 4 Votes (Like | Disagree)
thisisnotmyname Avatar
122 months ago
maybe they'll counter sue US regulators now too :-p
Score: 3 Votes (Like | Disagree)
kdarling Avatar
122 months ago
This week, U.S. District Judge Lucy Koh of San Jose, California ruled that the FTC's antitrust lawsuit against Qualcomm can proceed,
Although I've spent a lot of time defending Koh before, I wish they had picked a different judge to make this decision.

The FTC highlighted Qualcomm's "no license, no chips" policy under which the San Diego company refuses to sell chips unless customers also sign a patent license agreement and pay Qualcomm fees.
"No license, no chips." Well, duh. Why would Qualcomm sell someone their baseband chips if the buyer won't pay for the IP needed to use those chips?

Despite Apple's clever wording, those two phrases separated by a comma are not transitive and do not apply when reversed.

Yet apparently some simple minded regulators can't see the grammatical difference between a common sense business action, and an actual illegal action... such as having a "no chips, no license" policy where you had to buy Qualcomm chips to get a license to use chips from other companies. But Qualcomm has no such illegal policy.

Yeah, from what I can gather, Qualcomm clearly double charged Apple and many other companies by selling its own chipsets (whose cost already factors in IP license) and also charging for IP licenses.
There was no double charge, as no license fee is included with the chip prices... from either Qualcomm or any other supplier.

Just as with cellular patents from Nokia, Ericsson and hundreds of other contributors who do not sell Apple chips, the royalty is being paid for the IP, not for what it costs to make a piece of silicon that runs that IP. (Although Apple loves to push that bogus idea.)
Score: 2 Votes (Like | Disagree)

Popular Stories

Jon Prosser Rainbow

Leaker Jon Prosser Pushes Back as Apple Seeks His YouTube Data

Thursday October 8, 2026 5:51 am PDT by
Jon Prosser is arguing that Apple's alleged trade secrets are now public, while the company seeks his YouTube revenue records, channel analytics, and third-party messages to investigate his alleged financial gain from leaks about iOS 26. In a new joint status report filed yesterday, Apple said it is still waiting for YouTube revenue reports, channel analytics, and third-party communications...
Apple vs DOJ Feature

Apple Pushes Back on DOJ Request for More Evidence

Friday October 23, 2026 9:02 pm PDT by
Apple and the U.S. Department of Justice disagree over how much newer evidence Apple must hand over in their antitrust case, according to a new court filing this week. The two sides previously agreed to a June 20, 2025 cutoff for Apple's records. With the evidence-gathering phase now scheduled to end in late May 2027, lawyers want Apple to supply documents created up to 30 days before that ...
apple watch series 6 blood oxygen monitoring 1

Apple's $634 Million Apple Watch Patent Bill Just Got Even Bigger

Tuesday October 6, 2026 6:09 am PDT by
Apple's $634 million patent loss to medical technology company Masimo has just gotten even bigger, after a federal judge ordered Apple to pay an additional $184 million in interest on what it owes (via Bloomberg Law). The ruling takes Apple's bill to around $818 million, but that doesn't include any post-judgment interest continuing to accrue until the judgment is paid. Judge James Selna ...
Latest Stories
Apple Lowers App Store Fees in Taiwan Starting October 31
Apple Lowers App Store Fees in Taiwan Starting October 31
34 minutes ago
HomeView Pre-Order Returns to $289.99 on Amazon
HomeView Pre-Order Returns to $289.99 on Amazon
45 minutes ago
Apple Avoids Showing Pinched Fingers on iPad Mini Page in South Korea
Apple Avoids Showing Pinched Fingers on iPad Mini Page in South Korea
48 minutes ago
Old 'Popcorn Time' App Left Hundreds of Thousands of Macs at Risk
Old 'Popcorn Time' App Left Hundreds of Thousands of Macs at Risk
2 hours ago
You Can Turn Off the New MacBook Pro's Touchscreen Functionality
You Can Turn Off the New MacBook Pro's Touchscreen Functionality
3 hours ago
MacBook Pro Mini-LED vs. OLED Buyer's Guide: Every Difference
MacBook Pro Mini-LED vs. OLED Buyer's Guide: Every Difference
4 hours ago
Where to Pre-Order Apple's New MacBooks, iPad Mini, and iMac
Where to Pre-Order Apple's New MacBooks, iPad Mini, and iMac
5 hours ago
Apple Releasing HomePod Mini 2 Tomorrow With These New Features
Apple Releasing HomePod Mini 2 Tomorrow With These New Features
7 hours ago
How macOS Adapts Its Controls for Touch on the New MacBook Pro
How macOS Adapts Its Controls for Touch on the New MacBook Pro
7 hours ago
Just Got an iPhone Duo? Try These Features First
Just Got an iPhone Duo? Try These Features First
9 hours ago
Apple Announced Scott Forstall's Departure 14 Years Ago Today
Apple Announced Scott Forstall's Departure 14 Years Ago Today
9 hours ago
Best Buy Opens Pre-Orders for PROLED XDR MacBook Pro With $100 Bonus Gift Cards
Best Buy Opens Pre-Orders for PROLED XDR MacBook Pro With $100 Bonus Gift Cards
21 hours ago
Here's Everything Apple Announced This Week
Here's Everything Apple Announced This Week
21 hours ago
Here's a Real-World Look at the New MacBook Pro's Glowing Apple Logo
Here's a Real-World Look at the New MacBook Pro's Glowing Apple Logo
21 hours ago
How Accurate Were Rumors About Apple's OLED Touchscreen MacBook Pro?
How Accurate Were Rumors About Apple's OLED Touchscreen MacBook Pro?
22 hours ago
Apple Has 8 New Products Available for Pre-Order
Apple Has 8 New Products Available for Pre-Order
23 hours ago
iPhone Duo: Turn the Hinge Into an App Launcher
iPhone Duo: Turn the Hinge Into an App Launcher
23 hours ago
OLED MacBook Pro vs. Mini-LED MacBook Pro: Size and Weight Compared
OLED MacBook Pro vs. Mini-LED MacBook Pro: Size and Weight Compared
1 day ago
Best Buy Offering Up to $100 Gift Cards With iPad Mini 8 and M6 MacBook Pro Pre-Orders
Best Buy Offering Up to $100 Gift Cards With iPad Mini 8 and M6 MacBook Pro Pre-Orders
1 day ago
Adding Touch Didn't Cost the MacBook Pro Any Battery Life
Adding Touch Didn't Cost the MacBook Pro Any Battery Life
1 day ago
Apple Releases Redesigned Mac Chargers and 'World Travel Adapter Kit'
Apple Releases Redesigned Mac Chargers and 'World Travel Adapter Kit'
1 day ago
Apple Executives Explain Why the MacBook Pro Finally Has a Touch Screen
Apple Executives Explain Why the MacBook Pro Finally Has a Touch Screen
1 day ago
New MacBook Pro Features Deeper Bass and Improved Closed-Lid Audio
New MacBook Pro Features Deeper Bass and Improved Closed-Lid Audio
1 day ago
New MacBook Pro Offers Up to 16TB of Storage, Double Previous Limit
New MacBook Pro Offers Up to 16TB of Storage, Double Previous Limit
1 day ago
Apple's New Touchscreen MacBook Pro Costs Up to $14,549
Apple's New Touchscreen MacBook Pro Costs Up to $14,549
1 day ago
Apple Brings Dynamic Island to Mac for the First Time
Apple Brings Dynamic Island to Mac for the First Time
1 day ago
Mac Studio With M5 Ultra Now Available With 512GB RAM for $22,299
Mac Studio With M5 Ultra Now Available With 512GB RAM for $22,299
1 day ago
Illuminated Apple Logo Returns to MacBook Pro After 10 Years
Illuminated Apple Logo Returns to MacBook Pro After 10 Years
1 day ago
Apple Announces OLED MacBook Pro With Touch Display
Apple Announces OLED MacBook Pro With Touch Display
1 day ago
Apple Store Down Ahead of 'Pro and Tell' Launch Today
Apple Store Down Ahead of 'Pro and Tell' Launch Today
1 day ago