Consumer Group Which? Seeks to Withdraw Major UK Class Action Against Qualcomm
Consumer watchdog Which? has formally applied to withdraw its high-profile class action lawsuit against chipmaker Qualcomm, after alleging the company infringed competition laws leading to higher smartphone prices for consumers. The application was filed at the Competition Appeal Tribunal in London, marking a significant reversal in the long-running legal battle.
Background of the Claim and Withdrawal
Which? originally brought the claim on behalf of approximately 29 million UK Apple and Samsung smartphone users, seeking damages for devices purchased between October 1, 2015, and January 9, 2024. The consumer group estimated that individuals could have been due an average of around £17 per phone if the action had been successful.
However, on Tuesday, Which? announced it would apply to the tribunal for permission to withdraw the proceedings entirely. Crucially, Qualcomm will not make any payment as a result of this withdrawal.
Which?'s Revised Position Based on Evidence
In a statement, Which? explained that based on the evidence presented during the trial, it has concluded that Qualcomm did not coerce Apple, Apple's chipset manufacturers, or Samsung to sign any patent licences or chipset agreements. Furthermore, the group acknowledged that Qualcomm did not agree to any unfair licensing terms.
The consumer watchdog now states that Qualcomm did not infringe competition laws and that its practices did not lead to an increase in the prices consumers paid for their mobile phones. This represents a complete turnaround from the original allegations.
Original Allegations and Qualcomm's Response
The initial lawsuit alleged that Qualcomm breached UK competition law by exploiting its dominance in both the patent-licencing and chipset markets. Which? claimed this allowed Qualcomm to charge manufacturers like Apple and Samsung inflated fees for technology licences, which were then passed on to consumers through higher prices or lower-quality smartphones.
Lawyers for technology giant Qualcomm consistently described its supply policy as "innocuous and lawful." Following the withdrawal application, Qualcomm issued a statement noting that after more than six years of litigation, including a lengthy trial, the class representative has agreed to withdraw the lawsuit in its entirety, pending tribunal approval.
Qualcomm's Statement and Legal Precedent
Qualcomm emphasized that if approved, this withdrawal would conclude the class representative's lawsuit with no payment by the company. The chipmaker highlighted Which?'s acknowledgment that, based on trial evidence and arguments, the tribunal would find Qualcomm's licensing and chipset practices neither infringe competition laws nor result in UK consumers paying higher smartphone prices.
"This recognition by the class representative, following a trial on the merits, reaffirms what the courts in the United States have repeatedly held: Qualcomm's licensing practices are lawful and do not harm competition," Qualcomm stated.
Implications for UK Consumer Litigation
The withdrawal of this major class action represents a significant development in UK consumer litigation, particularly concerning technology and competition law. The case had been closely watched as a test of collective redress mechanisms for alleged anti-competitive practices affecting millions of consumers.
The application now awaits approval from the Competition Appeal Tribunal, which will determine whether to grant permission for the complete withdrawal of proceedings against Qualcomm.
