A major legal battle involving smartphone technology has come to an end in London, with chip manufacturer Qualcomm announcing Tuesday that a significant lawsuit against the company will be dropped.
The consumer advocacy group Which? had filed the case representing approximately 29 million British consumers who purchased iPhones or Samsung smartphones beginning in 2015.
The organization had sought damages totaling up to 480 million pounds (equivalent to $652 million), claiming that Qualcomm forced major phone manufacturers to pay excessive licensing fees through what critics called a “no licence, no chips” approach that applied globally.
According to Which?, this practice meant that companies like Apple and Samsung were required to pay inflated royalty payments to Qualcomm regardless of whether Qualcomm’s actual chips were installed in their devices.
Qualcomm defended its business model, stating that the legal challenge incorrectly portrayed the company’s established practice of requiring device makers to secure proper licensing for essential patents before purchasing chipsets.
The case underwent a full trial last year, but before the Competition Appeal Tribunal could issue its final decision, Which? announced it would seek to dismiss the lawsuit. The withdrawal comes as part of a settlement arrangement where Qualcomm will not provide any monetary compensation to the affected consumer group.
In explaining the decision, Which? stated it had determined that Qualcomm’s business methods “did not infringe competition laws, did not result in inflated royalties, and did not lead to an increase in prices consumers paid for their mobile phones.”
A representative from Qualcomm responded to the development, saying: “This recognition by the class representative, following a trial on the merits, reaffirms what the courts in the United States have repeatedly held: Qualcomm’s licensing practices are lawful and do not harm competition.”
