A legal and epic battle between two tech giants has just taken astronomic proportions. Apple and Qualcomm have recently appealed to courthouses to settle business turbulences between the two parties. However, the battle has reportedly left amiable grounds and went rogue. This is because Qualcomm might request the International Trade Commission to prohibit iPhone imports from reaching U.S.
ITC Might Refuse Ban on iPhone Imports, Yet It Might Resort to a Similar Decision
At the moment, Apple filed a total of four lawsuits in U.K., China, and U.S. against one of its main suppliers, Qualcomm. In all these cases, Apple’s complaint is the same. The tech giant considers that its provider is asking too high fees for basic patents. As Qualcomm is practically monopolizing the industry, the company has the freedom to charge however it wants.
Nonetheless, Qualcomm didn’t delay to hit back. However, the chipmaker hit an extremely sensitive point for Apple. The company appealed to the International Trade Commission to forbid iPhone imports in U.S. As this is the most fruitful market for Apple, it would be a critical blow to the company.
Qualcomm hopes the U.S. trade agency to take a decision sooner than other lawsuits. Even though the authorities would probably not consider a full ban, there might be other stipulations which Qualcomm can take advantage of against Apple during their four lawsuits. If the agency refuses to take any action, it would also mean that Qualcomm earned more time to prepare its arguments.
If Apple Wins, Other Clients Will Ask Lower Fees as Well
On the other hand, Apple is not a passive player either. The tech giant cut its royalty payments to Qualcomm on Friday. The explanation that followed this decision revolves around the same claim according to which the chipmaker demands unfair charges.
While Apple resorted to Qualcomm products for all its recent iPhone models, the latest version employs mixed technology between Qualcomm and Intel. This way, the company hopes to cut its dependence on one supplier. In the event that Apple wins, the key chipmaker might as well expect other major clients to demand lower charges.
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