Home > Markets > Apple Vs Qualcomm: $1 Billion Lawsuit Up for Issues on Royalties After TFC Sued Qualcomm for Competitive Practices

Apple Vs Qualcomm: $1 Billion Lawsuit Up for Issues on Royalties After TFC Sued Qualcomm for Competitive Practices

By January 22, 2017 at 5:52 am
Qualcomm Enters Joint Venture With China's Guizhou Province, Will Design, Develop and Sell Advance Server Chipset In China (Photo : Justin Sullivan | Getty Images News)

Qualcomm is having a pretty rough week. After being sued by the Federal Trade Commission on Tuesday, the company has just been sued by Apple for royalty disputes.

Apple Files a Lawsuit

According to CNBC, Apple has filed a lawsuit against Qualcomm for "unfair" royalty charges. The lawsuit is tagged at a staggering amount of $1 billion and it remains to be seen how the dispute will be settled.

The outlet says Apple is claiming that Qualcomm is charging the tech giant five times more compared to the other companies it is currently working with. In a statement released by Apple to the outlet, the company expressed its disappointment over Qualcomm's business tactics.

"We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts," the statement from Apple says.

The FTC Takes a Shot at Qualcomm

On Tuesday, the Federal Trade Commission's office sued Qualcomm for over-pricing. According to the press release from the FTC, Qualcomm has been over-pricing on gadgets and devices, thus raising problems with the competition.

Qualcomm has not yet responded to both lawsuits. Other details about FTC's lawsuit have yet to be revealed. It is expected that more information will be disclosed in the coming weeks.

South Korea Fines Qualcomm

Before 2016 ended, Qualcomm once again faced a wall in the form of South Korea. According to Reuters, the anti-trust regulatory board of South Korea has fined Qualcomm with a whopping 1.03 trillion won, or $854 million.

South Korea fined the company for business practices that are deemed unfair in the market. The issues include patent licensing and modem chip sales practices that Qualcomm had been exercising for the past years.

Qualcomm has said that it will face South Korea in court though details about the court battle are scarce at this point. Stay tuned for more updates on the battles that the popular chipmaker is faced with this year.

Like Us on Facebook