The recent FTC trial between Apple and Qualcomm in January 2019 can be best described as the tip of the ice berg. The real fight is going to unfold as the tech giants face each other in the courtroom at San Diego for $27 bn trial.
This trial will reveal if Qualcomm is creating monopoly with its modem chips and is charging exorbitant fees for the same. Apple has blamed Qualcomm of following practices that kill competition and has resulted in enhanced prices for the chip, marred competition, restricted options for the customers.
Apple first filed a case in January 2017 against Qualcomm alleging that Qualcomm is charging Apple twice, once for the processors and then again as royalty.
Apple says that Qualcomm should charge only for the wireless chip that go inside the iPhones. Foxconn as well as Pegatron engaged in assembling of the Apple devices too agree and have joined Apple in the lawsuit.
Qualcomm has been defending that they are not creating a monopoly and maintain that the technology they are using is far valuable than the modems and therefore, the price for the same should be in line with the phone selling prices.
The matter went to the court since both the parties have failed to reach a consensus. The trial is scheduled to open on Tuesday, where both the parties will give their opening arguments after which, Apple will present its witnesses to the court. It is believed that Tim Cook, CEO of Apple is likely to testify in the 1st week of the trial. Other prominent faces would include Jeff Williams, the operating head, marketing chief Phil Schiller, President of Qualcomm Cristiano Amon along with the CEO Mollenkopf.
The trial is likely to close in the week beginning May 13, 2019.
In the multibillion dollar case, manufacturing partners of Apple has sought for $9bn refund for from Qualcomm for paying excess royalty since 2013.