Qualcomm Faces UK Trial over Smartphone Claims

Qualcomm could be forced to make a series of compensatory moves if UK consumer group Which? convince a tribunal that the chip giant abused its market power. The series of trials started yesterday.

Which? stated that 29 million UK Apple and Samsung smartphone owners could be in line for an average payout of £17 each after the trial at the Competition Appeal Tribunal. The trial is expected to last for five weeks and is focused on whether Qualcomm held market power and, if so, if it abused it. Which? explained that if it wins this part, a second trial would be held to determine the US company’s conduct and potential financial damage.

The consumer group believes the financial hit to consumers tallies to £480 million. “This trial is a huge moment,” Which? CEO Anabel Hoult said. “It shows how the power of consumers, backed by Which?, can be used to hold the biggest companies to account if they abuse their dominant position.” Which? believes Qualcomm broke UK competition law by using its dominant position in patent-licensing and chip sectors to inflate the price device makers pay for licences. It argues that the higher prices were passed on to consumers.

The group is seeking damages for affected Apple and Samsung smartphones purchased between 1 October 2015 and 9 January 2024. It noted Qualcomm faced similar investigations and court action in other nations. Which? explained rules included in the Consumer Rights Act of 2015 allow it to lead a class-action style case against Qualcomm and potentially establish a legal precedent.