Qualcomm wins UK smartphone 'patent tax' case as Which? withdraws £480m claim

Qualcomm has emerged victorious in a major UK smartphone patent case, after consumer advocacy group Which? withdrew its £480 million ($650 million) lawsuit following indications from the Competition Appeal Tribunal that the chipmaker did not abuse its market dominance.

The case centered on allegations that Qualcomm's position as a dominant supplier of processors and radio chips for smartphones led to inflated prices for UK consumers. Which? claimed that between October 2015 and January 2024, up to 29 million UK residents collectively overpaid by £17 ($23) per device due to Qualcomm's licensing practices.

The Tribunal's Expected Findings

According to documents filed by Which?, the Tribunal is expected to make three key findings:

• Qualcomm did not coerce Apple, Apple's Chipset Manufacturers (CMs), or Samsung to sign any patent licenses or chipset agreements
• Qualcomm did not leverage its position as a chipset supplier to coerce licensing terms
• Qualcomm's licensing and chipset practices did not infringe competition laws or result in inflated royalties

Case Background and Evidence

The five-week trial in October and November 2025 featured testimony from senior Qualcomm executives and expert economists. Despite Which?'s arguments that even major players like Apple and Samsung felt compelled to pay inflated prices for Qualcomm components, the evidence apparently failed to convince the Tribunal.

Qualcomm's UK legal team prepared a robust defense that ultimately led to the consumer group's decision to withdraw without any settlement payment. The chipmaker maintained a professional stance, declining to celebrate the victory in its announcement of the planned agreement.

Industry Context and Market Shifts

Interestingly, the case withdrawal comes amid significant shifts in the smartphone industry's relationship with Qualcomm. Both Apple and Samsung have recently signaled moves away from Qualcomm components:

• Apple has begun using its own modems in iPhone Air and some low-end handsets
• Samsung revealed plans to improve Exynos SoC performance to power premium smartphones, a role currently filled by Qualcomm's Snapdragon chips

These developments suggest the market may be naturally evolving away from Qualcomm's dominance, potentially addressing some of the concerns raised in the lawsuit through competitive forces rather than regulatory intervention.

Pattern of UK Tech Antitrust Cases

This outcome follows a pattern of UK antitrust cases targeting major tech companies:

• Apple faces a £1.5 billion payout after losing a UK App Store case
• Google faces billion-pound claims over Play Store fees
• Vodafone, EE, O2, and Three hit with £3 billion overcharging lawsuit
• Microsoft in UK court over cloud licensing

Qualcomm's victory represents a significant win for the company in defending its business practices against competition claims, particularly in a jurisdiction that has shown increasing willingness to pursue large tech companies over market practices.

Implications for the Industry

The case withdrawal highlights the challenges consumer groups face in proving antitrust violations in complex technology markets. The Tribunal's expected findings suggest that Qualcomm's licensing and chipset practices, while potentially dominant, did not cross the legal threshold for market abuse under UK competition law.

For UK consumers, the withdrawal means no collective compensation will be forthcoming, despite Which?'s claims of widespread overpayment. The case underscores the difficulty of translating concerns about market dominance into successful legal action, particularly when major industry players like Apple and Samsung continue to engage with the supplier in question.

The outcome may embolden other technology companies facing similar allegations in the UK, while consumer advocacy groups may need to reassess their strategies for challenging market practices in the complex semiconductor and smartphone ecosystem.