Which? applies to end UK class action over smartphone chip royalties

Consumer watchdog Which? has applied to withdraw its lawsuit against chipmaker Qualcomm after alleging it had infringed competition laws which led to higher prices of smartphones for consumers.

Which? brought the claim at the Competition Appeal Tribunal in London on behalf of around 29 million UK Apple and Samsung smartphone users.

However, on Tuesday it said it would apply to the tribunal for permission to withdraw the proceedings in their entirety, and that Qualcomm would not make any payment as a result.

Which? said based on evidence, it had concluded the tribunal would find that Qualcomm did not coerce Apple, Apple’s chipset manufacturers or Samsung to sign any patent licences or chipset agreements or agree to any licensing terms, and that Qualcomm did not infringe competition laws and did not lead to an increase in the prices consumers paid for their mobile phones.

Which? had sought damages for all affected Apple and Samsung smartphones purchased between October 1 2015 and January 9 2024, estimating that individuals could be due an average of around £17 per phone if the action was successful.

The consumer group alleged Qualcomm breached UK competition law by taking advantage of its dominance in the patent-licencing and chipset markets.

It claimed that this resulted in Qualcomm being able to charge manufacturers such as Apple and Samsung inflated fees for technology licences, which were passed on to consumers in the form of higher prices or lower-quality smartphones.

Lawyers for technology giant Qualcomm described its supply policy as “innocuous and lawful”.

Qualcomm said in a statement: “After more than six years of litigation, including a lengthy trial, the class representative (Which?) has agreed to withdraw its lawsuit against Qualcomm in its entirety, pending approval from the Tribunal.

“If approved, this would conclude the class representative’s lawsuit, with no payment by Qualcomm.

“The class representative has issued a statement acknowledging, based on the evidence and arguments at trial, the tribunal will find that Qualcomm’s licensing and chipset practices neither infringe competition laws nor result in UK consumers paying higher prices for their smartphones.

“This recognition by the class representative, following a trial on the merits, reaffirms what the courts in the United States have repeatedly held: Qualcomm’s licensing practices are lawful and do not harm competition.”