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South Korea: Top telco fined for bullying tablet manufacturer

By  |  April 14, 2014

South Korea’s top fixed-line telco KT Corp. has reportedly been issued a $2 million fine by the Fair Trade Commission over the way it handled business with a domestic electronics manufacturer.

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    KT was sanctioned, the FTC announced Monday, for anticompetitive behavior that harmed tablet maker Enspert. The FTC found that KT repeatedly changed criteria it demanded from Enspert products and unfairly cancelled its contract with the manufacturer after sluggish tablet sales in 2011 on claims Enspert failed to resolve reported product defects.

    KT had originally looked to its tablet, K-PAD, to compete with rival Samsung’s tablets, but KT’s tablet rollout yielded weak results.

    Enspert reportedly had no choice but to adhere to KT’s demands and eventually end the contract.

    ”KT’s move was unreasonable, as the decision was made unilaterally,” the FTC stated. “Enspert holds no responsibility concerning the cancellation of the contract.”

    Reports say KT plans to appeal the fine.

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