Qualcomm has some serious legal problems right now. The FTC and Apple accused it of abusing its power in the chip business. The FTC is investigating Qualcomm’s alleged antitrust practices, while Apple went ahead and sued the company for overcharging for critical chips used in the iPhone. Qualcomm is disputing those claims and denying any wrongdoings. But it certainly doesn’t look goodfor the company right now, because Samsung and Intel have just filed amicus briefs against Qualcomm in its FTC battle.
On the Apple front, things aren’t looking good there either, as the iPhone maker supposedly instructed its suppliers to withhold royalty payments to Qualcomm until the lawsuit is resolved. Qualcomm doesn’t appreciate missing out on iPhone money and the company has sued no less than four major Apple partners.
Qualcomm has filed a complaint against Foxconn, Pegatron, Wistron, and Compal, companies that mass-produce various devices for Apple, according to Reuters.
A few weeks ago, Qualcomm was forced to revise its most recent earnings guidance after Apple informed it that there will be no royalty payments to its contract manufacturers for the sales in the March quarter. iPhone fees would have accounted for some $500 million in revenue for the first three months of the year, money that Qualcomm might not see anytime soon.
But it turns out that Qualcomm really wants that cash. The chip maker wants these four entities to comply with their obligations and asked for declaratory relief and damages in its new suit.
“While not disputing their contractual obligations to pay for the use of Qualcomm’s inventions, the manufacturers say they must follow Apple’s instructions not to pay,” the company said.
