Technology company, Apple, has filed a $1 billion lawsuit against chip maker, Qualcomm. Apple is accusing Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates.
Apple said in its suit filed in a U.S District Court, that Qualcomm withheld the rebates because of Apple’s discussions with South Korea’s antitrust regulator, the Korea Fair Trade Commission.
“If that were not enough, Qualcomm then attempted to extort Apple into changing its responses and providing false information to the KFTC in exchange for Qualcomm’s release of those payments to Apple. Apple refused.”
Qualcomm is a major supplier to Apple and Samsung and these two companies accounted for its $23.5 billion revenue in its most recent fiscal year.
But Qualcomm General Counsel Don Rosenberg considers Apple’s claims “baseless.”
“Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information.”
“We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”
This lawsuit comes days after the U.S. government accused the chip maker of using its dominant position as a supplier of certain phone chips to impose “onerous” supply and licensing terms on cellphone manufacturers. Qualcomm said it would also contest the FTC complaint.
