Union of Apple assembled companies sues Qualcomm for violating antitrust laws

The battle between Apple and Qualcomm continues with new development as four assembled iPhone companies and other products has suit against the chipmaker.

Hon Hai (the mother company of Foxconn ), Wistron, Compal Electronics and Pegatron accuse Qualcomm of violating two sections of the U.S. antitrust law. This is a response to a lawsuit filed by Qualcomm in May to for Apple contractors to pay licensing fees that Apple advises them to stop paying.

Theodore J. Boutrous, a lawyer for four companies, said: “Qualcomm has publicly acknowledged our consumer lawsuit against Apple and punished them for working with Apple.”

The allegation is part of a growing dispute between Apple and Qualcomm, which provides the modem chip technology that enables iPhone to connect mobile networks, the business model of the relationship between chip sales and licensing fees of Qualcomm.

According to Qualcomm Chairman Derek Aberle, Apple is controlling every statement and act of the bidder in the suit. He also suggested that of iPhone maker did not intervene and instruct partners to do these actions.

Most of the statements in the suit of contractors are the same as Apple’s objections to Qualcomm’s business model. An Apple official confirmed they are providing legal support to contractors as part of a compensation deal between companies. Apple also formally participated in the defendant’s litigation as a defendant.

The lost revenue from the Apple affair has had a major impact on Qualcomm sales. Analysts predict that in the second quarter of 2017, the chip maker earned $ 5.2 billion when compared with $ 6 billion one year ago.

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