A PYMNTS Company

South Korea Rejects Broadcom’s Proposal To Correct Unfair Practices

By  |  June 13, 2023

The Korean Fair Trade Commission has announced its decision to reject Broadcom’s proposal to remedy its unfair business practices through a voluntary correction scheme worth 20 billion won ($15.5 million).

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The regulator found in favor of Samsung Electronics in an ongoing investigation into allegations that Broadcom violated local laws by pressuring the Korean tech giant to enter into long-term contracts for the supply of smart device parts.

    The proposed correction scheme, which included warranty services for components purchased by Samsung and support for fabless companies, was deemed insufficient to restore fair trade order and safeguard the interests of other industry players.

    Read more: Apple Enters Multibillion-Dollar Deal With Broadcom For US Chips

    “(Broadcom’s proposal) falls short as a suitable measure to restore the fair trade order and safeguard the interests of other industry players,” the FTC said in a statement.

    “Expanding warranty and technology support for Samsung Electronics is deemed inadequate in terms of both content and extent as a means of damage reparation,” the regulator added, noting the Korean victim “clearly” expressed its disagreement with the solution.