Following the Federal Trade Commission pursuing legal action against Qualcomm for charging companies a large amount to use its parts patents, Apple has decided to jump in with a lawsuit to the tune of $1 billion, says a report from CNBC.
Apple pointed Qualcomm was pulling five times more from manufacturers “than all the other cellular patent licensors we have agreements with combined.” However since Qualcomm’s patents pretty much make it so that mobile devices actually work, companies pay the price anyway.
The thing here is that Qualcomm’s patents are meant to be priced fairly since roughly all companies use them. That’s where the FTC comes in saying that the company is using its role as a means to reap massive fees from other companies.
Qualcomm has denied allegations from the FTC and Apple. The lawsuit comes back to the FTC’s suit in that Apple says that Qualcomm withheld $1 billion in rebates because it answered the FTC truthfully during an investigation. The result there was Qualcomm taking an $853 million hit.
If you’re asking about the $1 billion in rebates, in exchange for Apple—a powerhouse in mobile—having Qualcomm as an exclusive supplier, Qualcomm shaved some off the top as far as how much Apple would have to pay.