A major class action lawsuit against technology giant Qualcomm has opened at the Competition Appeal Tribunal in London. Consumer group Which? is representing around 29 million UK smartphone users who own Apple and Samsung devices in the legal challenge.
The five-week trial will examine whether Qualcomm held market power and allegedly abused its dominant position in patent licensing and chipset markets. Which? claims the tech giant charged manufacturers inflated fees for technology licences, costs that were then passed on to consumers through higher phone prices or lower-quality devices.
Allegations of market abuse
Philip Moser KC, representing Which?, outlined the core allegations against Qualcomm during opening submissions. He told the tribunal: "Qualcomm, instead of competitive negotiation, uses the inherent risk, or sometimes explicitly stated threat, of chipset supply disruption, software delay, to foreclose a normal discussion of royalties."
The barrister explained Qualcomm's alleged strategy further: "It's 'unless you take our package of licences at Qualcomm's rate and on our terms, unless you do that there are no chips'. And Qualcomm's terms include a royalty at a rate which we say is likely to be inflated. And that's payable on every phone whether it uses Qualcomm's chips or not."
Potential damages and timeline
Which? is seeking damages for affected Apple and Samsung smartphones purchased between October 1 2015 and January 9 2024. The consumer group estimates individual users could receive an average payout of around £17 per phone if the legal action proves successful.
If this first trial establishes Qualcomm's market dominance and abuse, a second trial would focus specifically on the company's conduct and calculate damages. Which? has estimated the total damage to consumers at approximately £480 million.
Standing up to tech giants
Which? chief executive Anabel Hoult described the trial as "a huge moment" that demonstrates consumer power. She said: "It shows how the power of consumers - backed by Which? - can be used to hold the biggest companies to account if they abuse their dominant position."
Hoult emphasised the importance of collective action, stating: "Without Which? bringing this claim on behalf of millions of affected UK consumers, it would simply not be realistic for people to seek damages from the company on an individual basis - that's why it's so important that consumers can come together and claim the redress they are entitled to." Qualcomm is expected to present its opening submissions on Tuesday.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
