Which?, the consumer watchdog, is applying to withdraw its lawsuit against Qualcomm, the chipmaker, which claimed it had broken competition laws leading to higher prices for smartphone buyers.
The lawsuit was brought on behalf of 29 million UK Apple and Samsung smartphone users at the Comepetition Appeal Tribunal, alleging that Qualcomm had coerced the two phone manufacturers into signing licensing agreements that would favour the chipmaker in the market.
The claim alleged that Qualcomm took advantage of its dominant market position when it comes to chipmaking and patents, which would force smartphone manufacuters into higher prices for licensing agreements. These price hikes, Which? claimed, would fall unfairly onto the consumer.
Which? sought damanges for Apple and Samsung smartphone customers who made their purchases between October 1 2015 and January 9 2029, saying that consumers could be owed around £17 per phone if Qualcomm was found at fault.
However, Which? appears to be backtracking on the claims, saying that the evidence presented thus far in the tribunal suggests that Qualcomm would be found to have not coerced the two smartphone manufacturers into signing any such licensing terms that would infringe competition laws or bring up consumer prices.
On Tuesday the consumer advocate said that it would apply for permission to withdraw its claim in the tirbunal entirely, meaning that Qualcomm would not face any payment requirements.
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“After more than six years of litigation, including a lengthy trial, the class representative (Which?) has agreed to withdraw its lawsuit against Qualcomm in its entirety, pending approval from the Tribunal,” Qualcomm said in a statement.
“If approved, this would conclude the class representative’s lawsuit, with no payment by Qualcomm.
“The class representative has issued a statement acknowledging, based on the evidence and arguments at trial, the tribunal will find that Qualcomm’s licensing and chipset practices neither infringe competition laws nor result in UK consumers paying higher prices for their smartphones.
“This recognition by the class representative, following a trial on the merits, reaffirms what the courts in the United States have repeatedly held: Qualcomm’s licensing practices are lawful and do not harm competition.”





