The Strategist

Apple demands $ 1 billion from Qualcomm

01/24/2017 - 14:06

In the US, Apple filed a $ 1 billion-worth lawsuit against its computer chips supplier Qualcomm. The smartphones developer claims that its supplier went beyond all bounds and violated antitrust laws, inflating prices of goods. Thus, the supplier refused to return to Apple surplus payment in the amount of $ 1 billion. Now, the companies are waiting for court proceedings.

Maurizio Pesce
Maurizio Pesce
According to CNBC television, computer chips supplier Qualcomm shuffled cards and decided not to give money back, after the developer of smartphones took part in negotiations with the South Korean antitrust agency.

The latter has pursued an investigation against Qualcomm and find out all details of the dispute between the companies, yet Apple decided to intervene in the negotiations. Now, the company has to pay a heavy price for it.

Apple itself does not agree with such a drastic decision of his supplier. In return, the company decided to refuse private talks and left the matter to the court's decision.

The lawsuit was filed in Federal District Court for the Southern District of California. The most remarkable thing in the case is that Apple went to legal proceedings with its supplier only after the USA Federal Trade Commission (FTC) filed a lawsuit against Qualcomm's, accusing the supplier of unfair tactics, aimed at preserving a monopoly in supply to the United States.

These statements let off Appleā€™s leash, which urgently calculated its damage. Apple insists on its right, implying that they are not the only company that had to overpay to the supplier. This can be proven by the fact that last December the Korean regulator ruled out that Qualcomm used dishonest practices, and fined the company for $ 854 million for unfair trade.

Apple claims that Qualcomm did not miss a chance to profit by the company, overestimating prices in five times and establishing a completely unfair conditions of cooperation between the companies.

The smartphones developer explained its decision to start court proceedings because his strength is running out after a series of unsuccessful attempts to negotiate with the supplier for a reasonable pricing policy for delivery of goods.

Qualcomm itself believes that Apple's claims lack rationale and evidence. For its part, the company intends to consider all the details, and now the matter is pending.