SEOUL, Sept. 25 (Yonhap) — U.S. wireless chipmaker Broadcom Inc. declared on Monday that it will appeal the South Korean Fair Trade Commission’s (FTC) decision to impose a 19.1 billion-won (US$14.3 million) fine for its unfair business practices towards Samsung Electronics Co.
In a statement, Broadcom expressed its “disappointment” with the FTC’s ruling, and announced its intention to appeal the case to the Seoul High Court.
The FTC’s penalty on Broadcom was prompted by a 2020 long-term agreement it forced Samsung to sign, taking advantage of its market dominance and using unlawful tactics, such as cutting off its supply and technical support. The agreement stipulated that Samsung Electronics had to purchase Broadcom’s smartphone parts worth $760 million annually from 2021 to 2023, with Broadcom requiring Samsung to compensate for any shortfall if the purchasing amount fell below that amount.
“Broadcom has been working closely with Korean customers in a fair and lawful manner and has made significant contributions to the innovation and success of the Korean economy and some of its largest technology organizations,” the company said in the statement.
“Broadcom worked very closely with the staff of the KFTC to reach a mutually beneficial outcome that is fair and reasonable for all parties involved,” it added.
In June, the FTC dismissed Broadcom’s proposal to voluntarily correct its unfair business practices with 20 billion won, ruling in favor of Samsung. The regulator stated that the proposal “fell short as a suitable measure to restore the fair trade order and safeguard the interests of other industry players.”
Fair Trade Commission Chairperson Han Ki-jeong speaks during a press conference held in the central city of Sejong on Sept. 21, 2023. (Yonhap)
colin@yna.co.kr
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