Millions of Apple and Samsung users could receive payouts in £480m Qualcomm lawsuit

Highlights:

• Around 29 million UK smartphone users could be eligible for compensation
  
• Which? is suing Qualcomm for allegedly inflating handset prices
  
• The case could see a £480m payout if the consumer group wins
  

Consumer group takes Qualcomm to court

Millions of Apple and Samsung users across the UK may soon benefit from a £480 million compensation claim, as consumer watchdog Which? takes chipmaker Qualcomm to court over alleged anti-competitive behaviour.

The case, which opened on Monday at the Competition Appeal Tribunal in London, centres on accusations that Qualcomm charged inflated prices and licensing fees for key smartphone components, forcing manufacturers to pass on the extra costs to consumers.

Who could benefit

If Which? succeeds, around 29 million consumers who bought an Apple or Samsung handset between 1 October 2015 and 9 January 2024 could each receive an estimated £17 per phone.

The claim covers nearly a decade of smartphone purchases and is part of an effort to ensure that major corporations are held accountable for pricing practices that may have unfairly affected customers.

Allegations of market abuse

Which? alleges that Qualcomm abused its dominant market position by forcing Apple and Samsung to agree to inflated terms for chips essential to the operation of their smartphones.

The tribunal will first determine whether Qualcomm held such power and whether it misused it. If the court finds in favour of Which?, a second phase will follow to decide the size and distribution of compensation.

Qualcomm denies the claims

Qualcomm, one of the world’s largest producers of mobile processors, has rejected the allegations, calling the case “baseless”. The company has previously faced similar scrutiny, including an EU fine for antitrust violations and an unsuccessful case by the US Federal Trade Commission, which was dismissed in 2020.

A test of consumer power

Anabel Hoult, Chief Executive of Which?, described the trial as “a huge moment” for consumers:

“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.”

With proceedings expected to last five weeks, the case could mark a major milestone for collective consumer rights in the UK and a warning to tech giants about the cost of market dominance.