A massive legal battle against chip giant Qualcomm has ended abruptly with a total victory for the semiconductor company. On Tuesday, the British consumer protection group “Which?” announced it is withdrawing a lawsuit that sought roughly £480 million ($652 million) in damages.
The case centered on accusations that Qualcomm abused its dominance in the tech world to drive up prices for regular people. Which? filed the claim on behalf of about 29 million consumers in the UK who purchased Apple iPhones or Samsung Galaxy devices since 2015. The group originally argued that Qualcomm forced phone manufacturers to pay unfair royalties. They attacked Qualcomm’s “no license, no chips” policy, alleging that the company made Apple and Samsung pay for patent licenses even if they didn’t use Qualcomm’s chips, effectively inflating the final price tag of smartphones.
However, the consumer group has now completely backed down. In a statement, Which? admitted that if the case continued, the Competition Appeal Tribunal would likely rule against them. They conceded that the court would find Qualcomm did not force the smartphone giants into signing bad deals. Furthermore, they acknowledged the tribunal would likely rule that Qualcomm’s practices didn’t break competition laws or cause consumers to pay more for their phones. As part of the withdrawal agreement, Qualcomm will not pay a single penny to the claimants.
A spokesperson for Qualcomm called the move a validation of their business. They noted that this outcome aligns with previous rulings in the United States, which have repeatedly found that Qualcomm’s licensing practices are lawful. Indeed, a similar lawsuit in California challenging the company’s patent deals was dismissed just last year.
This marks a significant win for the San Diego-based company, clearing a major legal hurdle in Europe. While Apple and Samsung have not commented on the withdrawal, the result cements Qualcomm’s ability to maintain its current licensing model without fear of a massive payout in the UK.
