NextFin news, Qualcomm, the U.S.-based semiconductor giant, appeared in a London court on Tuesday, October 7, 2025, to defend itself against a £480 million ($647 million) class-action lawsuit. The suit, brought by the British consumer advocacy group Which?, accuses Qualcomm of abusing its dominant market position to impose inflated royalty fees on smartphone manufacturers, including Apple and Samsung, for chipsets used in their devices.
The lawsuit alleges that Qualcomm enforced a "no licence, no chips" policy globally, compelling manufacturers to pay royalties even on devices that did not contain Qualcomm chips. According to Which?, this practice has affected approximately 29 million consumers in the UK who purchased iPhones or Samsung smartphones since 2015, potentially entitling them to compensation.
Lawyers representing Which? argued in court filings that Qualcomm's licensing practices act as an "industry-wide private tax," artificially inflating the prices of smartphones and boosting Qualcomm's profits. The trial is scheduled to last five weeks, beginning this Monday, October 6, 2025.
Qualcomm's legal team rejected the allegations, stating that the lawsuit misrepresents the company's established policy. They explained that manufacturers are required to obtain licenses for Qualcomm's standard-essential patents before purchasing chipsets, a common industry practice. Qualcomm also highlighted that major customers like Apple and Samsung possess significant buyer power, countering claims that the company could unilaterally impose excessive royalties.
The case is being closely watched as it could have significant implications for the global smartphone market and patent licensing practices. Qualcomm's shares have risen marginally in afternoon trading on Tuesday, maintaining an overall gain of over 10% this year.
The lawsuit is filed and being heard in London, United Kingdom, reflecting the jurisdiction where the consumer group Which? operates and where affected consumers reside.
Exchange rate used in the case references: £1 equals approximately $1.35.
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