Under the 2011 deal, Qualcomm was named Apple's sole supplier of modem chips, which help mobile phones connect to wireless data networks, in exchange for which Qualcomm agreed to give Apple a rebate - the exact nature of which has not been disclosed.
This, the court heard, is the root of the reason why other suppliers weren't supplying modem technology for Apple products. Starting in 2016, Apple split the business between Intel and Qualcomm, but in 2018, Apple moved exclusively to Intel for its newest phones.More news: 'Roma' Is The Big Winner At Critics' Choice Awards
By 2016 and 2017, Apple introduced Intel's modems in some of its iPhones but also still used Qualcomm chips.
Antitrust regulators argue that Qualcomm's deal with Apple is symptomatic of the way Qualcomm behaves more generally, with anticompetitive practices created to block out rival chipmakers.More news: Cameron church celebrates safe return of Jayme Closs
Qualcomm's Chief Executive Officer, Steve Mollenkopf, testified in front of the U.S. Federal Trade Commission and said Apple had asked for $1 billion incentive if it was to swap Infineon modems that were in iPhones at the time, with Qualcomm's. Apple could choose another supplier but it would lose the rebate, effectively increasing the cost of its chips.
"The entire concept of Project Antique was to find a second supplier".More news: Patriots' AFC Championship Game hosting hopes dashed by Colts' stinker
Since the negotiating team from Cupertino didn't specify a guaranteed number of modems Apple will be ordering from Qualcomm, the chip maker was forced to pursue the infamous exclusivity agreement for iPhone modems that it now sues Apple for breaking. No offence to (Intel) but we don't want to be single supplier with them. But Apple's lawsuit against Qualcomm filed in early 2017 caused their business relationship to change "in a very profound and negative manner", leading to using only Intel's modems for the phones released previous year. Mollenkopf testified. Qualcomm is being accused of trying to block rivals, such as Intel, which Mollenkopf denied.