British consumer rights group Which? has decided to drop a five-year legal case against chipmaker Qualcomm. The lawsuit, which accused Qualcomm of artificially inflating the prices it charged for iPhone modems, ended with an undisclosed agreement.
In 2021, Which? filed a lawsuit against Qualcomm on behalf of 29 million British consumers, initially seeking more than $650 million in damages. The group alleges that Qualcomm illegally inflated the price of 4G modems and passed those costs on to buyers of iPhones and Samsung phones. The lawsuit also accuses Qualcomm of forcing the companies to pay the fee, which would net each consumer 30 pounds (about $42) regardless of whether the chip was actually used in the device.
Qualcomm has always maintained that the lawsuit is without merit. According to Reuters, Which? said in a statement that it would withdraw the lawsuit and has reached a settlement agreement with Qualcomm. The consumer group said the court would find that Qualcomm did not coerce Apple or Samsung into signing any binding agreement.
The specific terms of the settlement agreement were not disclosed, but it is known that Qualcomm will not pay any compensation to the plaintiff group. Which? also noted that the court will determine that Qualcomm's business practices "did not violate competition law, did not result in inflated patent fees, and did not result in higher prices for consumers when purchasing mobile phones."
A Qualcomm spokesman responded, "This recognition made by the plaintiff's representative after a substantive trial once again confirms the position that the U.S. courts have repeatedly supported: Qualcomm's licensing practices are legal and will not harm competition." The years-long lawsuit ended with consumer groups voluntarily withdrawing the lawsuit, marking Qualcomm's victory in the legal battle over modem pricing disputes.