£480m Which? smartphone claim goes to trial in UK court 

Which? takes on Qualcomm to win compensation for millions of Apple and Samsung smartphone users.

Consumer group Which? has launched a £480 million collective legal action claiming that millions of people paid too much for their phones because of the way a US tech company priced its products.

The case targets Qualcomm, a company that makes chips used in most smartphones around the world. Which? argues that Qualcomm charged Apple and Samsung unfairly high fees for using its technology, and that those costs were passed on to consumers through higher phone prices.

The trial began this week at the Competition Appeal Tribunal and is expected to last around five weeks. It could set an important precedent for how major tech firms price and license their technology, and for how consumers can challenge unfair market practices.

Anabel Hoult, CEO of Which?, 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.”

If you have bought an Apple or Samsung smartphone in the UK since October 2015, you could be owed compensation if the case is won. 

Hoult added: “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.”

If you bought an Apple or Samsung smartphone in the UK since 2015, find out more about the claim or sign up to stay updated.

What the Qualcomm claim is all about

A US tech company that most people have never heard of could have influenced the price of almost every smartphone sold in the UK.

Qualcomm makes the chips that power and connect most modern phones, including Apple and Samsung models. Because its patented technology is essential for smartphone performance, manufacturers must pay to license it.

Which? claims Qualcomm abused this position by charging Apple and Samsung unfairly high fees for those licences. The consumer group says those extra costs were passed on through higher handset prices, meaning millions of UK buyers paid more than they should have.

What the court will decide

The £480 million collective claim, representing around 29 million consumers, will test whether Qualcomm broke UK competition law by abusing its market power.

A central question is whether the inflated licence fees were passed on to consumers through retail prices. If Which? can prove this “pass-on” effect, millions of people could receive compensation.

The Tribunal will also consider how any compensation should be calculated and distributed and whether refurbished or business-purchased phones fall within the claim.

A judgment is expected next year, but appeals or a potential settlement could extend the process or affect the final payout amount.

Who could be eligible for compensation

Millions of people in the UK could benefit if the Which? claim succeeds. Eligibility depends on when and where you bought your phone, and whether it falls within the period covered by the case.

You are likely included in the claim if you:

• Bought an Apple or Samsung smartphone in the UK between 1 October 2015 and 9 January 2024
• Purchased it new or as an eligible refurbished model
• Were living in the UK when you bought it

If Which? wins, compensation could range from £5 to £30 per person, depending on the phone model and when it was bought, with an average payment estimated at around £16 to £17.

Frequently Asked Questions (FAQs)

Q: What about refurbished or second-hand phones?
A: Refurbished models bought directly from Apple or Samsung are likely to be covered, but second-hand or business-purchased phones may not be. The Tribunal will confirm the details at a later stage.

Q: Do I need to do anything now?
A: You do not need to make a claim at this stage. If you think you might be eligible, you can register for updates so you are notified about any decisions or compensation payments.

Q: How will any compensation be paid?
A: If Which? wins, details of how consumers can receive their share will be announced after the Tribunal’s damages phase. Payments will likely be handled through an online claims process.

Q: How long will it take?
A: The trial is expected to run for five weeks, with a decision likely next year. If there are appeals, the final outcome may take longer.

Your rights under UK law

The case against Qualcomm is being brought under the Consumer Rights Act 2015. This law allows consumers to join together and claim compensation when a company breaks competition rules.

The claim is being run on an “opt-out” basis. That means if you bought an Apple or Samsung smartphone in the UK during the affected period, you don’t need to sign up to take part – you’re automatically included if you’re eligible.

If the Tribunal decides Qualcomm has broken the law, there will then be a separate phase to work out how much compensation is owed and how it should be shared among consumers.

This trial is an important test of whether large tech companies can be held to account for the way they set prices and use their market power.