In Ongoing Legal Battle, Qualcomm Hits Back at Apple With Countersuit

Qualcomm logo on building facade

Apple stock is only down a point or so in early morning trading as a fight between chip maker Qualcomm and the tech giant has been heating up lately, with the former filing its own countersuit against Apple.  In the suit, Qualcomm is stating that Apple covered up how iPhone 7s that had Qualcomm chips in it, outperformed those that contained Intel chips.

Per Investor’s Business Daily, Apple “acted to prevent Qualcomm from revealing to consumers the extent to which iPhones with Qualcomm’s chip sets outperformed iPhone’s with Intel’s chip sets,” said Qualcomm in the countersuit that was was filed later in the day on Monday in the US District Court for the Southern District of California.

Allegations from Qualcomm include that Apple lied to regulators to spur investigations of the chipmaker.  Back on January 20, Apple had started the legal battle against Qualcomm over its technology licensing practices.

In that suit from Apple, they alleged that Qualcomm had high demands for its technology and was trying to punish Apple for its cooperation in a regulatory probe in South Korea.  During December, the antritrust regulator in South Korea hit Qualcomm with a huge $902 million regulatory fine for having violated antitrust laws.

To make matters worse for the chip maker, just a few days earlier the US Federal Trade Commission also hit Qualcomm with a lawsuit, alleging they were using anticompetitive tactics to try and hold strong a monopoly in baseband processors that are a mainstay in wireless devices.

In the countersuit, Qualcomm said: “Apple could not have built the incredible iPhone franchise that has made it the most profitable company in the world, capturing over 90% of smartphone profits, without relying upon Qualcomm’s fundamental cellular technologies.”

This will probably be one to keep an eye on, especially as Apple prepares for its annual World Wide Developers Conference in June and the assumed launch of its next iPhone in the fall.

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