South Korea's antitrust regulator announced on Thursday that it had decided to fine U.S. chipmaker Broadcom 19.1 billion won (approximately $14.3 million) for unfair business practices against Samsung Electronics. South Korea's Fair Trade Commission (FTC) said Broadcom exploited its market dominance and used illegal means including cutting off supply and technical support to force Samsung to sign a long-term agreement in 2020.
According to the agreement, Broadcom forces Samsung Electronics to purchase US$760 million worth of smartphone parts every year from 2021 to 2023, and requires Samsung Electronics to compensate for any shortfall if the purchase amount is less than that amount.
The Korean Fair Trade Commission said: "Broadcom is a company with an overwhelming market share in the market for cutting-edge and high-performance mobile device components used in smartphones and tablets. The company used unfair tactics, including suspending order approval, shipments and technical support, to force Samsung Electronics to sign a long-term agreement."
In June this year, the Korean Fair Trade Commission rejected Broadcom's proposal to voluntarily correct unfair business practices with 20 billion won, and made a judgment in favor of Samsung Electronics.