Apple Charges Qualcomm in Beijing Seeking 1 Billion Yuan

Apple Inc filed a complaint against Qualcomm Inc in Beijing, appealing 1 billion yuan ($145.32 million) in compensations, charging the chip supplier abused its clout in the chip industry, Beijing’s Intellectual Property Court stated in a statement on Wednesday.

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Apple Inc filed a complaint against Qualcomm Inc in Beijing, appealing 1 billion yuan ($145.32 million) in compensations, charging the chip supplier abused its clout in the chip industry, Beijing’s Intellectual Property Court stated in a statement on Wednesday.

Qualcomm is a main supplier to both Apple and Samsung Electronics Co Ltd for “modem” chips that connect phones to wireless networks. Together, the  two companies accounted for 40% of Qualcomm’s $23.5 billion in revenue in its current fiscal year.

A second lawsuit was filed by Apple Inc against Qualcomm, which accused it of failing to live up to promises made to license “standard essential patents” widely and economically.

Qualcomm stated in an emailed statement that it had not seen the full complaint against it filed in the Chinese court. However, executive vice president and general counsel  of Qualcomm stated Qualcomm had offered Apple the same terms as other customers after a 2015 regulatory ruling in China and that his company would defend its business model in Chinese courts.

“These filings by Apple’s Chinese subsidiary are just part of Apple’s effort  to find ways to pay less for Qualcomm’s technology,” Rosenberg said in the statement. “Apple was offered terms consistent with terms accepted by more than one hundred other Chinese companies and refused to even consider them.”

The lawsuits follow a decision by the U.S. Federal Trade Commission to file a complaint on Jan. 17 in which it blamed Qualcomm of using anticompetitive strategies to uphold its monopoly of a key semiconductor used in mobile phones.

Apple followed with a corresponding complaint last Friday, It requested a federal court in California for $1 billion in promised rebates and alleged Qualcomm of overpricing for chips.

Qualcomm did not respond immediately to a request for comment. The firm previously stated that it would fight both the Federal Trade Commission (FTC) and the Apple complaint filed in the United States.

In additional, the chip creator faces legal trials across the world.

Oualcomm was fined by South Korea’s antitrust regulator for 1.03 trillion won ($854 million) in December for what it called unfair practices in patent licensing, a judgment the U.S. chip maker said it will contest in court.

In February 2015, Qualcomm paid a $975 million fine in China after  a 14-month probe, while the EU in December 2015 alleged it of abusing its market power to prevent rivals.

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