£480m payout could be due to UK Apple and Samsung smartphone users

A significant class action lawsuit against tech giant Qualcomm, which could see millions of UK smartphone users receive payouts, is set to commence this week.

Consumer advocacy group Which? has initiated the claim on behalf of approximately 29 million Apple and Samsung users across the UK.

The legal proceedings, scheduled for five weeks from 6 October at London’s Competition Appeal Tribunal, will initially scrutinise whether Qualcomm held substantial market power and, crucially, if it exploited this dominant position.

Should this first phase prove successful for Which?, a subsequent trial would then address Qualcomm’s specific conduct and the damages incurred by the affected consumers, which the group estimates at around £480 million.

Which? alleges Qualcomm breached UK competition law by taking advantage of its dominance in the patent-licensing and chipset markets.

open image in gallery

It claims that this resulted in Qualcomm being able to charge manufacturers such as Apple and Samsung inflated fees for technology licences, which have then been passed on to consumers in the form of higher prices or lower-quality smartphones.

Which? is seeking damages for all affected Apple and Samsung smartphones purchased between October 1 2015 and January 9 2024.

It estimates that individual consumers could be due an average of around £17 per phone if the action is successful.

Which? said the action was “vital” to obtain redress for consumers and to “send a clear message to powerful companies like Qualcomm that if they engage in harmful, anticompetitive practices, Which? stands ready to take action”.

Which? chief executive Anabel Hoult said: “This trial is a huge moment. It shows how the power of consumers – backed by Which? – can be used to hold the biggest companies to account if they abuse their dominant position.

“Without Which? bringing this claim on behalf of millions of affected UK consumers, it would simply not be realistic for people to seek damages from the company on an individual basis – that’s why it’s so important that consumers can come together and claim the redress they are entitled to.”

Qualcomm has been approached for comment.