Apple is Suing Chip Supplier Qualcomm for $1 Billion
Days after the Federal Trade Commission accused it of monopolizing the market around a key semiconductor used in cell phones, Qualcomm was hit with a massive lawsuit filed by one of its largest clients—Apple.
According to Fortune, Qualcomm is a major supplier to Apple, as well as Samsung Electronics, for “modem” chips that the companies use in their smartphones that allow them to connect to wireless networks. Combined, Fortune reported, the two companies accounted for around 40 percent of Qualcomm’s $23.5 billion in revenue in its most recent fiscal year.
In the suit, submitted Friday, the Cupertino-based tech giant is seeking $1 billion (with a b) for damages related to its “anticompetitive tactics” used to maintain a monopoly over key semiconductors used in mobile phones. Specifically, Apple is accusing Qualcomm of overcharging for chips and refusing to pay some $1 billion in promised rebates. According to the suit, Qualcomm withheld the rebates because of Apple’s discussion with South Korea’s antitrust regulator, the Korea Fair Trade Commission.