U.S. chip giant Broadcom was fined 19.1 billion won by South Korea's antitrust agency for forcing Samsung to sign unfair agreements

News from this site, South Korea’s antitrust agency imposed a fine of 19.1 billion won on the American chip giant Broadcom. According to the Korea Times, after a four-year investigation, South Korea’s antitrust agency found that Broadcom used its dominant position in the market to engage in unfair business practices against Samsung Electronics

It is reported that Broadcom used illegal means to force Samsung Electronics to sign a long-term smartphone parts purchase agreement. In 2020, Broadcom cut off product supply and technical support to Samsung Electronics, and Samsung Electronics had to sign this long-term agreement that was not good for itself.

#According to this agreement, Broadcom requires Samsung Electronics to purchase from it an annual value of US$760 million from 2021 to 2023 (currently approximately 5.548 billion yuan) RMB) smartphone parts. If the purchase amount is less than US$760 million, Samsung Electronics will also need to pay the difference to Broadcom. The purpose of the agreement is to prevent Samsung Electronics from purchasing components from cheaper suppliers such as Qorvo and Qualcomm. However, this agreement ended in August 2021. The Korea Fair Trade Commission (KFTC) rejected Broadcom’s proposal to voluntarily correct its unfair business practices, supporting Samsung Electronics A company with an overwhelming market share in the performance mobile device parts market, (the company) used unfair means, including suspending order approval, shipments and technical support, to force Samsung Electronics to sign a long-term agreement.”

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