SEOUL (Reuters) – South Korea’s antitrust watchdog said on Thursday it will tentatively fine Broadcom Inc and affiliates 19.1 billion won ($14.24 million) for forcing a long-term supply deal that was unilaterally disadvantageous to Samsung Electronics.
The country’s Fair Trade Commission will also issue a corrective order to Broadcom, it said in a statement.
A representative of Broadcom could not be immediately reached. Samsung declined comment.
($1 = 1,340.9300 won)
(Reporting by Joyce Lee; Editing by Kim Coghill)
South Korea’s antitrust watchdog announced on Thursday that it will impose a tentative fine of 19.1 billion won ($14.24 million) on Broadcom Inc and its affiliates. The fine is a result of the company’s forced long-term supply deal, which was unilaterally disadvantageous to Samsung Electronics. The Fair Trade Commission of South Korea will also issue a corrective order to Broadcom, as mentioned in a statement.
Broadcom Inc, however, could not be reached for immediate comment. On the other hand, Samsung declined to provide any comments on the matter. The antitrust watchdog’s decision comes as a measure to address the unfair business practices imposed by Broadcom, aiming to protect the interests of local companies like Samsung Electronics.
The fine of 19.1 billion won is intended to serve as a penalty for Broadcom’s anti-competitive behavior and to discourage similar actions in the future. By enforcing this fine, the antitrust watchdog aims to maintain a fair and competitive business environment in South Korea’s tech industry.
The forced long-term supply deal imposed by Broadcom had put Samsung Electronics at a significant disadvantage. The unfair terms and conditions of the deal were unilaterally determined by Broadcom, without considering the interests of Samsung Electronics. The corrective order issued by the Fair Trade Commission will work towards rectifying the negative impact caused by this deal.
Broadcom’s unavailability for immediate comment indicates that the company may need time to evaluate the situation and respond accordingly. Further discussions and investigations may be carried out to assess the extent of the harm caused by Broadcom’s actions.
The exchange rate of $1 to 1,340.9300 won is provided for reference purposes. This news is reported by Joyce Lee and edited by Kim Coghill.
In conclusion, South Korea’s antitrust watchdog has taken a decisive step by tentatively fining Broadcom Inc for their unfair business practices towards Samsung Electronics. This penalty serves as a warning to other companies engaging in anti-competitive behavior and aims to protect the interests of local businesses.
Credit: The Star : Tech Feed
