By Kang Yoon-seung
SEOUL, Sept. 25 (Yonhap) — U.S. wireless chipmaker Broadcom Inc. declared Monday that it will challenge the South Korean regulator’s ruling to levy a 19.1 billion-won (US$14.3 million) fine for its unjust dealings with Samsung Electronics Co.
In a statement, Broadcom expressed “regret” over the Fair Trade Commission’s (FTC) decision and said it will appeal to the Seoul High Court.
The punishment of Broadcom resulted from the U.S. firm’s forceful imposition of a long-term agreement in 2020 by taking advantage of its market power and using unlawful strategies, including cutting off its supply and technical support, as per the FTC.
Under the agreement, Broadcom compelled Samsung Electronics to purchase its smartphone components worth $760 million each year from 2021 to 2023 and demanded that the South Korean tech giant compensate for any deficiency if the buying amount drops below that amount.
In June, the FTC rejected Broadcom’s suggestion to voluntarily rectify its unfair business practices with 20 billion won, siding with Samsung.
The regulator had earlier said the suggestion “fell short as an appropriate measure to restore the fair trade order and protect 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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