Consumers May Claim £480 Million from Qualcomm Lawsuit

A class action lawsuit against Qualcomm could see consumers who purchased a Samsung or Apple smartphone between 2015 and 2024 entitled to a payout. The lawsuit was initiated by the UK consumer rights organization Which?, claiming that Qualcomm violated competition laws by imposing inflated licensing fees on both companies. This alleged misconduct likely led to increased prices for consumers.

The case was brought before the Competition Appeal Tribunal in 2021, which authorized it to proceed in 2022. As the trial is set to commence soon, it is expected to last approximately five weeks. Should the plaintiffs prevail, a total of £480 million (about $685 million) will be distributed to eligible phone buyers in the UK, resulting in an estimated payout of £17 (around $23) per individual.

Details of the Lawsuit

Qualcomm has faced numerous legal challenges in the past regarding its licensing practices. Notably, Apple previously withheld payments from Qualcomm over disputes related to royalty charges. In 2017, Qualcomm successfully defended itself against a similar lawsuit, a situation that could pose challenges for Which? in this ongoing case.

Additionally, the US Federal Trade Commission (FTC) has accused Qualcomm of antitrust violations, asserting that the company leveraged its dominant market position to compel manufacturers to accept specific licensing fees. This practice allegedly stifled competition and limited access to essential components for rival companies.

Should the lawsuit lead to a successful outcome for consumers, there will be no need for individuals to opt in to receive their payout. Almost anyone who purchased a Samsung device from the Galaxy S4 to the Galaxy S20 Ultra, or an iPhone from the 5s to the Xs Max, will qualify. However, it is important to note that not all Samsung models sold in the UK since 2015 are included, particularly those powered by Exynos chips.

For further details on eligibility and the latest updates, consumers are encouraged to visit the Which? website. As the case unfolds, it highlights the ongoing scrutiny of big tech companies and their practices, with potential financial ramifications for both Qualcomm and consumers.