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Apple Accused Qualcomm of Unfair Trade Practice; Files 1 Billion Yuan Rebate & Overpricing Claims in China

Apple Accused Qualcomm of Unfair Trade Practice, Files a 1 Billion Yuan Rebate & Overpricing claims in China

Regin Olimberio

Qualcomm Beijing is facing two lawsuit raps after Apple accused them of abuse in its position in the market and failure to meet inexpensive license for standard essential patents. According to a Beijing Intellectual Property Court, Apple seeks $145M in damages or equivalent to almost 1 billion Yuan.

In Qualcomm's defense, general counsel Don Rosenberg alleged that the Chinese subsidiary of Apple is just trying to look for ways to make Qualcomm Technology cheaper. Rosenberg also belied accusations that they are ripping money out of Apple because they offered the same terms with hundreds of other Chinese companies.

He also stressed that those terms were parallel to what was penned under the NDRC Rectification plan. Rosenberg also emphasized that Qualcomm is not only ready to defend their business model against Apple in China, but anywhere in the world, IBTimes reported.

To recall, Qualcomm is not only battling Apple, but the US Federal Trade Commission as well. In Jan. 17, FTC accused Qualcomm of employing unfair trade practices to maintain its grip on semiconductor market, according to a Reuters report. These parts are essential to manufacture mobile phones.

After the FTC affair, Apple realized that they too can file charges in China due to alleged unclaimed rebates and price cut from overpricing. The total cost for such Apple claims against Qualcomm reached 1 billion Yuan.

Qualcomm is the major supplier of chips for both Apple and Samsung. In fact, both companies are so dependent on Qualcomm that they account for almost half of what Qualcomm earned in recent fiscal year. This share quantifies for $23 billion of Qualcomm's revenue.

With the cases looming in China and the US, it is unclear whether it can affect the market relationship of Apple and Qualcomm. The only clear development of these cases is that Qualcomm is attempting to wrap up both charges in the US should it be possible to carry them over from China.

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