Qualcomm Antitrust Trial Begins: UK Consumer Group Seeks £480 Million for Inflated Smartphone Prices

Qualcomm is once again facing legal action — but this time, the lawsuit does not come from Arm or other industry players. Instead, it has been filed by the UK consumer advocacy group Which?, which accuses Qualcomm of imposing unfair licensing terms that forced Apple and Samsung to pay excessively high royalty fees for its technologies. According to Which?, these inflated costs ultimately drove up smartphone prices, burdening consumers with hidden expenses.

According to a report by BBC News, Which? has formally filed a lawsuit against Qualcomm in London’s Competition Appeal Tribunal, alleging that the American chipmaker exploited its market dominance to impose unfair licensing conditions, compelling Apple and Samsung to pay excessive royalties — a practice that, in turn, inflated the retail prices of smartphones.

If the court rules against Qualcomm, the company could face up to £480 million in compensation. Around 29 million UK consumers who purchased iPhones or Galaxy devices would be eligible for reimbursement — averaging about £17 per person.

The core issue of the case lies in whether Qualcomm leveraged its dominant position in the mobile chipset market to enforce unreasonable patent licensing and component pricing strategies on Apple and Samsung.

Which? argues that these excessive costs were ultimately passed on to consumers, creating what it calls an “invisible surcharge.” The trial is set to begin on October 6 and is expected to last five weeks. Should the court determine that Qualcomm engaged in monopolistic practices, a second phase will follow to determine how the compensation will be distributed.

Qualcomm has yet to issue an official statement but has previously dismissed the allegations as “baseless.” The company maintains that its patent licensing and chip business operate in accordance with international standards and remain fundamental to the functioning of the global smartphone ecosystem.

This is not Qualcomm’s first encounter with antitrust controversy. The company has faced similar scrutiny in the European Union, where a major fine was ultimately overturned by the EU’s General Court. Comparable collective actions have also arisen in Canada, while in the United States, the Federal Trade Commission (FTC) sued Qualcomm in 2017 — a case the regulator ultimately lost in 2020 for failing to prove anti-competitive behavior.

Anabel Hoult, CEO of Which?, described the lawsuit as a landmark demonstration of consumer power, holding global technology giants accountable for abusing market dominance. She emphasized that a favorable ruling would represent a significant milestone in strengthening consumer protection in the UK.

The case applies to individuals who purchased Apple or Samsung smartphones in the UK between October 1, 2015, and January 9, 2024. If the claim succeeds, affected consumers will automatically receive compensation without needing to submit individual applications.

Regardless of the outcome, this case once again underscores the smartphone industry’s deep dependence on a handful of core technology suppliers. When such suppliers exploit their patents and market power, it is not only the manufacturers who suffer — it is ultimately consumers who pay the price. With global regulators tightening their oversight, transparency and fairness in chipmakers’ licensing models are certain to become key focal points for future legal and policy scrutiny.

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