UK Trial Opens Over Qualcomm Antitrust Claims
Nearly 30 million people in the UK who bought an Apple or Samsung smartphone between 2015 and 2024 could share a £480m payout if a landmark case against Qualcomm succeeds. The consumer campaign group Which? is taking the US chip giant to the Competition Appeal Tribunal in London, with the trial starting on Monday anticipated to run for five weeks. The dispute centers on whether Qualcomm abused a dominant position by forcing Apple and Samsung to pay inflated prices and licensing fees for essential handset components.
Which? has framed the case as a potential turning point for consumer protection in UK tech markets. If a ruling finds that Qualcomm held market power and misused it, the next phase would determine damages and how the fund would be distributed to those who purchased eligible devices between 1 October 2015 and 9 January 2024.
What Are the Case Details?
The core question at trial is whether Qualcomm’s licensing practices harmed competition and, by extension, UK smartphone buyers. Which? argues that inflated royalties for standard-essential patents were passed along to consumers in the price of devices from Apple and Samsung, contributing to higher handset costs over nearly a decade.
Qualcomm, which has historically been a major supplier of smartphone chips and modems, has faced antitrust scrutiny in multiple jurisdictions. The company has previously rejected the claims, describing the case as having “no basis.” The UK hearing follows related actions abroad, including a Canadian case and previous EU fines for antitrust concerns.
Timeline and What’s at Stake
The trial is set to determine two key elements: whether Qualcomm possessed market power in relevant markets and, if so, whether it abused that power. If the court rules in favour of Which?, a second stage would determine damages, potentially distributing about £480m among roughly 29 million affected British phone owners, with an estimated individual payout of around £17.
Which?’s chief executive, Anabel Hoult, said the case demonstrates how consumers can hold large corporations to account. “This trial is a huge moment. It shows how the power of consumers – backed by Which? – can be used to hold the biggest companies to account if they abuse their dominant position,” she commented.
Broader Context
Qualcomm’s licensing practices have drawn scrutiny in other regions. A separate legal action in the United States, pursued by the Federal Trade Commission in 2017, sought to curb how the company licensed technology; that case was dismissed in 2020. The EU has also fined Qualcomm in the past over related antitrust concerns. These concurrent or historic actions underscore a broader global debate about how dominant chipset suppliers price and license essential technologies.
What Could This Mean for Consumers?
If Which? succeeds, the UK payout would be a direct financial acknowledgment of potential overcharging across a wide user base. For Apple and Samsung owners who purchased devices within the eligibility window, the prospect of a roughly £17 readjustment to their purchase cost represents a tangible remedy that extends beyond abstract legal principles.
Analysts say the outcome could influence how technology licensing is viewed in the UK going forward, potentially prompting reforms in competition policy or spurring further inquiries into other large tech players’ licensing practices.
What Happens Next?
Regardless of the broader implications, the immediate focus is on a rigorous five-week examination of evidence around market power and the alleged abuse of a dominant position. The court’s decision in this case could set a precedent for how consumer groups bring collective redress in complex tech disputes in the UK.
As with many high-profile antitrust battles, observers note that the outcome may hinge on nuanced economic arguments about market definitions, competitor dynamics, and the appropriate measure of damages. The BBC has approached Qualcomm for comment as the trial proceeds, and a verdict will be watched closely by consumers and industry players alike.
