Apple Files Lawsuit Against Qualcomm

Tech giant Apple, Inc. (NASDAQ: AAPL) had filed a lawsuit against telecommunication Equipment Company, Qualcomm Incorporated (NASDAQ: QCOM) in Beijing, claiming they abused its clout in the chip industry and seeking 1 billion yuan in compensations, said Beijing’s Intellectual Property Court.

According to Reuters, Apple also filed a second lawsuit against Qualcomm which accused it of failing to live up to promises made to license “standard essential patents” broadly and inexpensively. Qualcomm is a major supplier to both Apple and Samsung Electronics Co Ltd for “modem” chips that connect phones to wireless networks. The two companies together accounted for 40 percent of Qualcomm’s $23.5 billion in revenue in its most recent fiscal year. The lawsuits follow a decision by the U.S. Federal Trade Commission to file a complaint on Jan. 17 in which it accused Qualcomm of using anticompetitive tactics to maintain its monopoly of a key semiconductor used in mobile phones.

Last Friday, Apple a federal court in the state of California for a billion dollars in guaranteed rebates and indicted Qualcomm of overpricing for chips. Qualcomm said previously they would challenge both the FTC and the Apple lawsuit filed in the United States.

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