Apple Inc. v. Qualcomm Inc. (antitrust)

Analysis Group was retained on behalf of Qualcomm in an antitrust dispute with Apple in the US District Court for the Southern District of California. Apple accused Qualcomm of abusing its dominant position in mobile chip and technology markets to force Apple to accept elevated, “supra-FRAND” royalty rates for the use of its technology. Apple also alleged that Qualcomm unfairly set licensing royalty rates as a percentage of the end product price, and forced Apple to use Qualcomm chips exclusively.

An Analysis Group team led by Managing Principals T. Christopher Borek and Adam Decter – and Vice Presidents John Browning, Peter Finch, Anna Gumen, Shogo Hamasaki, Mark Lewis, and Ivan Maryanchyk – supported four academic experts, all of whom filed expert reports and testified at deposition.

  • Professor Oliver Hart analyzed the economics of the terms of the license agreements governing Apple’s use of Qualcomm’s technologies. He also opined on the economic benefits of enforcing long-term contracts.
  • Professor Christopher Knittel analyzed the price premiums associated with the inclusion of mobile wireless connectivity in Apple mobile devices.
  • Professor Jeffrey Prince used econometric techniques to analyze the value of camera quality in Apple smartphones. He also conducted conjoint surveys to estimate the value to consumers of other smartphone features enhanced by Qualcomm technologies.
  • Professor Edward Snyder used an industrial organization framework to analyze factors relevant to success in the mobile chips industry.

The matter was settled after the first day of trial.