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Qualcomm expert claims it was impossible for the company to impose unfair terms on Apple

Qualcomm claimed that instead of putting unfair terms, it “actually offered discounts” to retain Apple as it feared competition from Intel.

  • Published: January 25, 2019 2:32 PM IST
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Silicon chip-making giant Qualcomm is currently involved in a legal battle with Apple and an anti-trust case with US Federal Trade Commission. The company is currently focusing at the court proceedings in the anti-trust case. As part of the proceedings, legal experts from both sides are making arguments to present their side before the court. Part of the anti-trust case by FTC also dependents on the battle between Apple and Qualcomm. During a recent round of arguments, while replying to the question if the company operates as a monopoly in the market, the chip-maker added that it was impossible for the company to operate as the same.

According to a report by 9to5Mac, Qualcomm stated that it did not operate as a monopoly in the market as it “simply didn’t have enough power”. The line of questions were connected to the case where Apple claims that Qualcomm imposed two unfair terms on the smartphone maker. The report also pointed out the two unfair terms that Apple is referring to in its criticism of the chip giant. The first unfair term is where Qualcomm is asking Apple for a patent license fee even after Apple is purchasing the SoCs directly from them. Apple has termed this practice as “double dipping”.

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The second unfair term that the company is referring to “a percentage of the total cost of the phone” instead of a flat fee on the SoC chips. As part of this, the company claims that Qualcomm will benefit from all the improvements that Apple will make in the future iPhone models. Qualcomm expert claimed that Apple was open to reject or accept the terms.

According to the report, Qualcomm claimed that instead of putting unfair terms, the company “actually offered discounts” to retain Apple as it feared competition from Intel. This case has revealed a number of details regarding the negotiations between the two companies. As previously reported, Apple had no choice but to accept chips from Qualcomm as chips from other players were not up to the mark. Apple also wanted to use Qualcomm modems in its 2019 iPhone lineup but failed to lock the deal.

  • Published Date: January 25, 2019 2:32 PM IST