Broadcom to appeal FTC's $14.3 million fine for market power abuse

Industry

Broadcom to appeal FTC's $14.3 million fine for market power abuse

Published: 25 Sep. 2023, 10:24 Updated: 25 Sep. 2023, 10:26

Broadcom's company logo is shown outside one of their office complexes in Irvine, California, on March 4, 2021. [REUTERS]

Broadcom will challenge the Fair Trade Commission's (FTC) fine of 19.1 billion won ($14.3 million) against the company.

Broadcom called the FTC's decision "regretful" in a statement Monday, adding it will take the case to the Seoul High Court.

An FTC ruling, which has the same effect as a lower court decision, is taken to regional high courts if one of the involved parties files an appeal.

The antitrust regulator fined Broadcom 19.1 billion won ($14.3 million) for abusing its market dominance in the Korean market to force Samsung Electronics to sign an unfair long-term contract in 2020.

The contract obligated Samsung Electronics to buy $760 million worth of chips from Broadcom from 2021 to 2023. It also had Samsung to compensate for the shortfall should it fail to purchase the stated amount.

Broadcom in January had proposed to create a 20 billion won funding project for Korean tech companies and provide quality assurance assistance for Samsung Electronics as a corrective measure, which the TFC rejected in in June.

The regulator said the proposal "fell short as a suitable measure to restore the fair trade order and safeguard the interests of other industry players."

Broadcom said it has been in Korea's market 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."

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]