"Numerous competition regulators from around the world have concluded that Qualcomm abused its power over cellular technologies. Our investigation reaches the same conclusion: consumers have paid more for their cell phones and innovation has been stifled," said Michael Hausfeld, the chairman of Hausfeld.
Qualcomm controls the technologies critical to virtually every 3G device and many 4G devices. The suit alleges Qualcomm acquired this unique position by promising cellular standard setting organizations that if they adopted Qualcomm’s technology as the means to ensure interoperability with wireless networks, Qualcomm would work with competitors and device manufacturers and license its technologies on fair, reasonable, and non-discriminatory terms. Plaintiffs, however, allege Qualcomm has broken its promises and forced device manufacturers into licensing agreements with unreasonable and unfair terms, including exorbitant royalties that are tied to the entire price of the device. The suit alleges Qualcomm has refused to license its technologies to competitors and at times coerced device manufacturers to agree to deal exclusively with Qualcomm—eliminating competition and entrenching Qualcomm’s power.
The suit seeks relief for consumers who have been overcharged for their devices and an injunction to stop Qualcomm’s anticompetitive conduct from continuing. Hausfeld attorneys working on this matter are Michael Hausfeld, Michael Lehmann, Christopher Lebsock, Bruce Wecker and Samantha Stein.