Apple sues Qualcomm over unpaid licensing rebates

Apple claims that Qualcomm is withholding payment of more than $ 1 billion.

Apple is suing Qualcomm, claiming that the chip maker is withholding over $ 1 billion in rebates for licensing fees from Apple. The company also accuses that Qualcomm of holding a monopoly on chips for wireless devices such as smartphones and tablets.

From Bloomberg:

Apple is demanding Qualcomm hand over money that was supposed to be a rebate for licensing fees. Qualcomm is holding back the money as punishment for Apple cooperating with Korean antitrust regulators, according to the complaint filed in San Diego, California, where Qualcomm is based.

Last month, South Korea fined Qualcomm 1.03 trillion won (about $ 890 million), describing the company’s practices as monopolistic. Qualcomm is currently being sued by the U.S. Federal Trade Commission (FTC), while also under investigation by authorities in the European Union and Taiwan.

Qualcomm provides processors, wireless modems, and other chips to smartphone makers around the world. Apple notably makes use of the company’s wireless modems, though the iPhone 7 and iPhone 7 Plus use wireless modems from Intel in certain models.


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