Qualcomm in the dock over 'patent tax' on smartphones

Consumer group Which? says owners of Apple and Samsung devices overcharged by £480M

Qualcomm is facing a UK trial over allegations that it abused its dominant position in the smartphone chipset market to charge inflated license fees, ultimately driving up device prices for Brit consumers.

The Competition Appeal Tribunal in London will hear the case beginning October 7. The proceedings will unfold in two stages: first determining whether Qualcomm holds dominant market power and has abused that position, then - if wrongdoing is established - a second trial will examine the company's specific conduct and assess damages.

Consumer rights group Which? is bringing the action on behalf of UK consumers who purchased certain Apple or Samsung smartphones between October 1, 2015, and January 9, 2024. The group estimates these buyers were collectively overcharged by £480 million ($646 million) — approximately £17 ($23) per device.

Qualcomm is one of world's largest suppliers of chips for phones, providing processors, the Wi-Fi capabilities and cellular radio functions. It owns patents critical to wireless standards, including 5G and 4G.

Which? alleges that Qualcomm has engaged in anti-competitive practices, abusing its market position to charge smartphone makers inflated fees to license its tech, which then gets passed on to consumers in the form of higher prices.

"Without Which bringing this claim on behalf of millions of affected UK consumers, it would simply not be realistic for people to seek damages from the company on an individual basis – that's why it's so important that consumers can come together and claim the redress they are entitled to," said Anabel Hoult, CEO of the consumer rights group.

The case centers on the assertion that Qualcomm refuses to license its patents to rival chipset makers, meaning device makers such as Apple and Samsung are forced to obtain a license and pay substantial royalties for chipsets they purchase from the biz.

The trial is expected to last five weeks, and Which? emphasizes there is no guarantee of a compensation payout, as first they need to win the case or come to a settlement agreement with Qualcomm.

The Register asked Qualcomm for its reaction. ®