U.S. wireless chipmaker Broadcom (NASDAQ:AVGO) Inc. announced that it plans to appeal against the decision of the South Korean Fair Trade Commission (FTC) which imposed a 19.1 billion-won ($16 million) fine for unfair business practices against Samsung Electronics (KS:005930) Co.
The penalty was levied on Broadcom after the firm allegedly forced Samsung to sign a long-term agreement in 2020, using its market dominance and unlawful tactics, including cutting off its supply and technical support. As part of the deal, Broadcom required Samsung Electronics to procure smartphone parts worth $760 million annually from 2021 to 2023, and compensate for any shortfall if the purchasing amount falls below that figure.
The FTC rejected Broadcom's proposal to voluntarily correct its unfair business practices with a 20 billion won payment in June. 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."
In response to the FTC's decision, Broadcom expressed regret and announced its plans to appeal the case to the Seoul High Court.
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