World

Apple sues Qualcomm for $1.4 billion

CALIFORNIA: Apple has filed a US$1 billion (S$1.42 billion) lawsuit against supplier Qualcomm days after the US government accused the chip-maker of resorting to anti-competitive tactics to maintain a monopoly over key semiconductors in mobile phones.

Qualcomm is a major supplier to Apple and Samsung for "modem" chips that connect phones to wireless networks. The two companies together accounted for 40 per cent of Qualcomm's US$23.5 billion in revenue in its most recent fiscal year.

In the lawsuit filed, Apple accused Qualcomm of overcharging for chips and refusing to pay some US$1 billion in promised rebates.

Apple said in its complaint that Qualcomm withheld the rebates because of Apple's discussions with South Korea's anti-trust regulator, the Korea Fair Trade Commission (KFTC).

'EXTORT'

"If that were not enough, Qualcomm then attempted to extort Apple into changing its responses and providing false information to the KFTC in exchange for Qualcomm's release of those payments to Apple. Apple refused," Apple said in its lawsuit.

In a statement, Qualcomm general counsel Don Rosenberg called Apple's claims "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," Mr Rosenberg said.

"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."

Qualcomm's stock closed 2.4 per cent lower at US$62.88 on the news. - REUTERS

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