Apple Sues Qualcomm In China For $145 million
Hot on the heels of FTC charges against Qualcomm comes the news that Apple is suing the company in Chinese court for, among other things, overcharging for components. What the suit boils down to is that Qualcomm charged Apple not only for doing business with other firms, but also punished Cupertino-based company for cooperating with countries that filed charges against the semiconductor company.
Though at first glance this suit may seem like just another nasty squabble in techland, Apple may actually have a valid point that is corroborated by the Unites States Federal Trade Commission. The FTC filed charges against Qualcomm a week ago and one of them specifically mentioned Apple as being on the receiving end of what could be seen as a form of racketeering, where Apple was forced to exclusively do business with Qualcomm.
These are fairly serious charges, but they may have a basis in truth as not only did the FTC investigate Qualcomm for almost three years before deciding to litigate, but the company has faced sanctions in South Korea and mainland China for similar offenses. The Apple suit filed today is an extension of this affair, as apparently one of the methods Qualcomm used to punish Apple for cooperating with South Korean and Chinese authorities was to withhold payments totaling around $1 billion.
That’s a good chunk of change, even for a company of Apple’s size. Another claim in the suit states that Qualcomm has been overcharging Apple five times over for certain components, which likely won’t sit well with a Chinese judge. Qualcomm, for its part, replied to the suit by saying that the whole suit is just a dodge by Apple to make sure they don’t have to pay for Qualcomm’s technology. The truth of either company’s claims will come out eventually, though considering the speed of Chinese courts, interested parties are recommended not to hold their breath.
Fergus has been tinkering with computers since he was a kid and likes to put a stop to parties by listing the specs of all the digital devices in the room. It's best not to let him near your computer since he'll take it apart and may not put it back together again before he leaves.