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Apple Is "Disappointed" With How Qualcomm Does Business With Them, Sues Chipset Company For $1B

By JR O. , Jan 23, 2017 02:52 AM EST
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Even if you aren't exactly the techy type, there's good chance that you are still familiar with both Qualcomm and Apple. Qualcomm is a popular name when it comes to smartphone chipsets, and Apple, as everyone knows it, is the company behind the iPhones, iPads, and Macs. Needless to say, both these companies are currently making headlines as the iPhone maker sues the chipset company for a whopping $1 billion.

Qualcomm's Alleged Unfair Business Practices

It is already a given fact that the most popular smartphone brands like Samsung, Motorola, and others rely on Qualcomm not only for their chipset needs but also for the license deals that the company offers. However, as it turns out, Qualcomm may have been into some odd business which led the company to be sued by the Federal Trade Commission for unfair business practices. As per a Neowin report, Qualcomm grants special rebates to companies such as Apple for the use of its technology in its products. The problem is that the chipmaker tries to strong-arm the said companies and gives them the penalty of depriving them of the rebates if they work with other businesses.

Apple's Lawsuit Against Qualcomm

Apple has provided an official statement regarding their legal case against Qualcomm. Apple said that the chipset maker has been unfairly insisting on charging them royalties for technologies that they don't have anything to do with, and the more Apple innovates with new features, the more money Qualcomm takes "for no reason". The maker of iPhone says that this makes it more expensive for Apple to finance their innovations. Needless to say, Apple says that they are "extremely disappointed" with the way Qualcomm does business with them and after years of disagreement, the Cupertino-based company decided to take things to the courts.

As per Forbes' report, Qualcomm's motivation was to steer its competitors away from the iPhone. The FTC said that Qualcomm used its exclusivity to prevent Apple from working with its competitions that would most likely lead the competition into becoming a stronger competitor. Apparently, Qualcomm knew that any competitor that would win Apple's business will become stronger, as per the FTC.

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