Top court upholds antitrust watchdog's 18.6 bln-won fine on Broadcom
Top court upholds antitrust watchdog's 18.6 billion-won fine on Broadcom for unfair practices against Samsung
Quick Look
South Korea's Supreme Court upheld an 18.6 billion-won fine on U.S. chipmaker Broadcom for forcing Samsung Electronics to sign a disadvantageous long-term parts supply agreement.
AI-generated summary
Why It Matters
The FTC fined Broadcom in 2023 for compelling Samsung to purchase parts and compensate for shortfalls.
SEOUL, Nov. 2 (Yonhap) -- South Korea's top court has upheld the country's antitrust watchdog's decision to impose an 18.6 billion-won (US$13.8 million) fine on U.S. chipmaker Broadcom Inc. for unfair business practices against Samsung Electronics Co., sources said Monday.
According to the sources, the Supreme Court on Tuesday upheld a lower court ruling against Broadcom in a lawsuit the U.S. company filed against the Fair Trade Commission (FTC).
In 2023, the FTC fined Broadcom for using its superior position to force Samsung to sign a long-term agreement in 2020.
According to the watchdog, Broadcom compelled Samsung to purchase at least US$760 million worth of its smartphone parts annually from 2021 to 2023 and required the South Korean tech giant to compensate for any shortfall if its purchases fell below that amount.
Broadcom filed a lawsuit challenging the FTC's decision in November 2023.
In May, however, the Seoul High Court ruled against Broadcom, finding the fine justified.
An FTC decision, when challenged, is reviewed by the Seoul High Court, whose ruling can be appealed to the Supreme Court.
Open Questions
- Will Broadcom face further regulatory scrutiny in other jurisdictions?
