Apple files US$1 billion lawsuit against Qualcomm

Things are getting ugly between Apple and Qualcomm. Apple filed a lawsuit against Qualcomm this Friday claiming the chip manufacturer charges “excessive royalties” and is withholding payments in retaliation for Apple’s cooperation with South Korean regulators that are investigating Qualcomm. Apple is also accusing the chip supplier of charging an “unfair amount” to license its cellular patents. The tech giant is seeking almost US$1 billion in rebate payments, which have been withheld because of Apple’s cooperation in the investigation against Qualcomm.

"To protect this business scheme, Qualcomm has taken increasingly radical steps, most recently withholding nearly $1B in payments from Apple as retaliation for responding truthfully to law enforcement agencies investigating them," Apple said in a statement released to CNN.

South Korean regulators have fined Qualcomm almost $850 million last month because it has found the chip maker guilty of forcing phone manufacturers into unfair patent licensing agreements so they can get access to Qualcomm’s chips. The chip supplier is also in hot water with the Federal Trade Commission for pushing "onerous and anti-competitive supply and licensing terms" on phone manufacturers.

In a statement released by Reuters, Qualcomm General Counsel Don Rosenberg disputes Apple’s claims and calls them “baseless.”

"Apple has been actively encouraging regulatory attacks on Qualcomm’s business in various jurisdictions around the world, as reflected in the recent KFTC decision and FTC complaint, by misrepresenting facts and withholding information," Rosenberg says in the statement. "We welcome the opportunity to have these meritless claims heard in court where we will be entitled to full discovery of Apple’s practices and a robust examination of the merits.”