UK Case Claiming Qualcomm Inflated iPhone Prices to Be Withdrawn

A major UK consumer lawsuit alleging that Qualcomm inflated iPhone prices through its patent licensing practices will be withdrawn with no payment (via Reuters).

The lawsuit raised on behalf of 29 million UK smartphone buyers will be withdrawn following an agreement with the British consumer association Which?, which had filed the case seeking £480 million in compensation for consumers who purchased Apple or Samsung devices since 2015.

Which? alleged that Qualcomm abused a dominant market position by requiring manufacturers to obtain a license for its standard essential patents before purchasing chipsets. The lawsuit claimed this policy compelled Apple and Samsung to pay royalties even when Qualcomm chips were not used in their devices, thereby increasing the cost of smartphones sold to consumers.

The case had already proceeded to trial last year before the UK Competition Appeal Tribunal, but the tribunal had not yet issued a ruling. Which? said it will now apply to withdraw the case after concluding the tribunal would likely determine that Qualcomm did not coerce Apple or Samsung into licensing agreements or impose unfair terms. The organization also said it believed the tribunal would find Qualcomm's practices did not violate competition law or lead to higher smartphone prices.

The withdrawal represents the latest development in a long-running series of disputes involving Qualcomm's patent licensing model and Apple's reliance on the company's cellular technology. Starting with the C1 modem in the iPhone 16e, Apple is now transitioning away from Qualcomm modems to its own custom cellular chips.

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