A landmark legal battle that could result in £480 million compensation for UK smartphone users commenced at London’s Competition Appeal Tribunal on Monday, as consumer advocacy group Which? accused technology giant Qualcomm of systematically overcharging mobile phone manufacturers.
The five-week trial represents one of the largest consumer class actions in UK history, potentially affecting approximately 29 million customers who purchased Apple or Samsung smartphones between October 2015 and January 2024. Individual consumers could receive an average of £17 per device if the case succeeds.
The Core Allegations
Which? alleges that Qualcomm, one of the world’s dominant smartphone chipset suppliers, breached UK competition law by exploiting its market position in two critical areas: patent licensing and semiconductor manufacturing. The consumer group claims Qualcomm imposed inflated licensing fees on manufacturers like Apple and Samsung, costs that were subsequently passed to consumers through higher retail prices or reduced device quality.
“This trial is a huge moment,” said Anabel Hoult, Which?’s Chief Executive. “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”. She emphasised that without collective action, “it would simply not be realistic for people to seek damages from the company on an individual basis”.
The case centres on Qualcomm’s alleged “no license, no chips” policy, which reportedly required smartphone manufacturers to obtain separate patent licenses and pay substantial royalties as a precondition for purchasing chipsets. This practice allegedly enabled Qualcomm to extract excessive fees that manufacturers had no choice but to pass on to consumers.
Qualcomm’s Market Dominance Under Scrutiny
Qualcomm commands significant market share in the global smartphone chipset market, though recent data shows its dominance has faced challenges. While the company held approximately 45% of the 5G chipset market in 2023, down from 56% in 2019, it remains the leading supplier, particularly in the premium Android smartphone segment. MediaTek has emerged as a major competitor, increasing its 5G smartphone market share from 22.8% to 29.2% between 2023 and 2024, primarily through expansion in budget and mid-range devices.
The company’s extensive patent portfolio covers essential wireless technologies including 4G and 5G standards, giving it considerable leverage over smartphone manufacturers who require access to these technologies. Qualcomm reportedly holds approximately 10% of global 5G patents, making it nearly impossible for device makers to avoid licensing its intellectual property.
Legal Proceedings Structure
The case follows the UK’s collective proceedings regime established by the Consumer Rights Act 2015, which allows class actions to proceed on an “opt-out” basis for competition law breaches. This means affected consumers are automatically included unless they actively choose to exclude themselves from the proceedings.
The trial will unfold in two phases. The current proceedings will determine whether Qualcomm held substantial market power and whether it abused that dominant position. If Which? succeeds in this initial stage, a second trial will examine specific conduct and assess damages, with compensation potentially reaching the estimated £480 million.
Qualcomm has previously described the case as having “no basis” and continues to contest the allegations. The company’s legal team will argue that its business practices comply with competition law and that any fees charged reflect fair compensation for valuable intellectual property rights.
Market Implications
The case highlights broader concerns about market concentration in the technology sector and its impact on consumer prices. Which? argues that Qualcomm’s alleged practices have artificially inflated smartphone costs across the affected period, representing a form of “patent tax” that ultimately burdens consumers.
The legal action also reflects the growing use of collective proceedings in the UK to address competition law violations. Since the opt-out regime’s introduction, the Competition Appeal Tribunal has seen a significant increase in class actions, though most cases settle out of court rather than proceeding to full judgment.
If successful, the Qualcomm case would set an important precedent for consumer redress in competition law breaches, potentially encouraging similar actions against other technology companies accused of anti-competitive behaviour. The outcome could also influence how patent licensing agreements are structured in the smartphone industry, particularly regarding the balance between innovation incentives and competitive markets.
A similar class action against Qualcomm is currently proceeding in Canada, suggesting international coordination in addressing alleged anti-competitive practices in the mobile technology sector. The convergence of these legal challenges may pressure Qualcomm to reconsider its licensing strategies, regardless of individual case outcomes.
The trial is expected to conclude by early November 2025, with the tribunal’s decision likely to follow several months later. Given the complexity of the economic and technical evidence involved, appeals to higher courts remain possible, potentially extending the final resolution well into 2026.
