Apple is filing a lawsuit against Qualcomm for allegedly monopolizing and unfairly charging exorbitant prices on chips as well as withholding $1 billion in response to Apple’s cooperation with South Korean antitrust authorities.
The lawsuit from one of its biggest customers is the latest setback for Qualcomm.
Earlier this week, the Federal Trade Commission filed a suit against the company for practicing anti-competitive practices. And in December, South Korean regulators slapped the American chipmaker with an $854 million antitrust fine.
Qualcomm is one of the largest chip suppliers to Apple.
Apple wants Qualcomm to give it the $1 billion dollars in chip rebates that it alleges the company is holding as payback for the company for working with South Korean antitrust regulators.
“For many years Qualcomm has unfairly insisted on charging royalties for technologies they have nothing to do with,” Apple said in a statement.
“Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined. We are extremely disappointed in the way Qualcomm is conducting its business with us and unfortunately after years of disagreement over what constitutes a fair and reasonable royalty we have no choice left but to turn to the courts.”
Qualcomm did not immediately respond to The Hill’s request for comment.