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Only a few days after the U.S. Federal Trade Commission filed suit against Qualcomm for violations of antitrust, Apple joined in.
On Friday, the Cupertino, California based Apple, announced that it sued the chipmaker, based in San Diego, seeking damages of $1 billion.
Apple says that Qualcomm unfairly insisted on the charging of royalties for certain technologies that they do not have anything to do with.
The more that Apple innovates with its unique features like the TouchID, cameras or advanced displays, the more dollars Qualcomm is able to collect without any reason and that makes it more expensive to fund the innovations, says Apple.
Qualcomm created its behemoth business on older standards but reinforces its huge dominance via exclusionary tactics as well as excessive royalties says Apple.
Despite being only one of more than one dozen businesses contributing to cellular’s basic standards, Qualcomm insists on charging the iPhone maker a minimum of five times more than all other patent licensors of cellular that Apple has ongoing agreements with combined.
In its lawsuit, Apple claims that even upgrading certain things such as the memory of the iPhone to 256 GB from 128GB would result in a larger royalty collected by Qualcomm.
Apple claims it has overpaid billions of dollars due to the illegal scheme of Qualcomm.
This lawsuit comes following a complaint filed against Qualcomm this week that centers on Qualcomm’s licensing business.
The chipmaker is the biggest supplier for modern chips that allow phones to connect to the different cellular network and Qualcomm collects licensing fees for close to every modern phone around the world.
The FTC claims that Qualcomm uses its strong position within the industry to keep an illegal monopoly, where those who pay are its partners such as Apple.
A big part of the allegations by the FTC focused upon the relations Qualcomm has with Apple. The federal agency said that Qualcomm made its agreement of exclusivity with Apple starting in 2011 through the end of 2016.
Qualcomm provided rebates worth billions to Apple for its arrangement, but Apple purchased model chips at another supplier during that period.
Apple would face big penalties by losing out on the rebate payments received by Qualcomm.
The lawsuit by Apple agrees with the claims made by the FTC over the modem business. Qualcomm owns a monopoly on its modem chips that support a standard in cellular known as CDMA, which means code division multiple access.