Saturday, January 21, 2017

San Francisco – Abuse of dominant position: Apple continues to Qualcomm in court – The Express

The manufacturer of the iPhone has filed Friday in California, a complaint accusing Qualcomm of “overcharged for billions of dollars” thanks to anti-competitive practices in licenses for use of patents, and is claiming compensation.

Apple is also said to a victim of retaliatory measures financial on the part of Qualcomm, because he cooperated with an investigation in South Korea that led to the conviction of his supplier. The latter responded by accusing apple of encouraging the anti-trust procedures against him / her around the globe.

We are extremely disappointed with how Qualcomm conducts its business with us, and unfortunately, after years of disagreement on what constitutes royalties which are fair and reasonable, we would be left with no other choice than to turn to the courts,” said Apple in an email to AFP.

It accused Qualcomm of claim “five times” of royalties that the total of all other holders of patents, with whom he had spent licensing agreements.

Among the damage, he referred in particular to a billion dollars which would be payable under the terms of a contract between the two companies, but that Qualcomm refused to pay it to him because he has answered queries from the authority of the Korean competition KFTC.

If this were not enough, Qualcomm has then attempted to extort a change in the responses of Apple and the provision of false information to the FTC in exchange for the release of payments” insists Apple.

Apple had not sold, and the FTC had finally inflicted in December at Qualcomm a record fine of a little more than $ 850 million.

- Attacked on all continents –

The FTC in the us has also launched lawsuits earlier this week against Qualcomm, accusing him of violating anti-trust laws in the sale of some components and licenses to manufacturers of smartphones, including Apple.

The main complaint of all the accusers, is that Qualcomm holds patents on technology essential to mobile communications while being one of the world’s leading providers of chips needed for these communications. It would have strengthened its dominant position by linking the provision of its chips to manufacturers of smartphones with the rates that it charges for use of its patents.

Apple is estimated to have suffered particularly from these practices. The FTC in u.s. also pointed out in its own complaint that Qualcomm had imposed on the manufacturer of the iPhone to provide exclusively to him for these chips between 2011 and 2016, in exchange for royalties reduced on its patents.

Qualcomm, which had previously challenged the decisions of the Korean authorities and the united states, has also held a Friday “no basis” the complaint of its major customer.

Don Rosenberg, the executive vice-president in charge of legal issues, says that”Apple has intentionally distorted (the content of) our agreements and negotiations, as well as the extent and value of the technologies that we have invented,” and that he “actively encourages the attacks regulations against the activities of Qualcomm in various jurisdictions of the world“.

The group had also received at the beginning of 2015 to a fine of $ 975 million in China, and it talked about in its last quarterly report in November of other ongoing investigations in Japan, Taiwan as well as Europe, where the european Commission had formalized its charges against him at the end of 2015.

We look at Qualcomm on all continents of the planet, this is probably, strategically, the right time for Apple to do this,” said Patrick Moorhead, analyst at Moor Insight and Strategies.

Apple is not comfortable with the idea of having only a single supplier (chip), and takes this opportunity to address Qualcomm“, indicates again the analyst did not exclude that the complaint is motivated by the desire to increase the competition against Qualcomm, which would enable the manufacturer of the iPhone to negotiate contracts more favorable.

In the meantime, the case has lowered the action Qualcomm 2.42% 62,88 dollars on Friday. Apple has gained 0.18% to $ 120.


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