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Broadcom Appeals South Korean Ruling on Market Dominance

 |  September 24, 2023

Today, Broadcom, a US-based chipmaker, has vowed to appeal a ruling imposed by South Korea’s competition watchdog that penalizes the company for abusing its dominant market position in the country. This decision follows a KRW19.1 billion ($14.4 million) penalty that was imposed as a result of an investigation by the Korea Fair Trade Commission.

In a statement sent to Mobile World Live, Broadcom asserted they would appeal the FTC ruling to the Seoul High Court, commending the higher court for their previous efforts to “recognize the independence of Broadcom’s suppliers in South Korea”.

Related: South Korea Rejects Broadcom’s Proposal To Correct Unfair Practices

The FTC found that Broadcom had been using unfair practices to pressure Samsung to sign a long-term supply agreement. The investigation concluded that the chipmaker’s tactics had put considerable strain on Samsung’s operation models, necessitating the penalty.

Adding to the ongoing discourse, Broadcom quoted “the unprecedented intervention of some third parties who maneuvered local businesses in South Korea” as the main reason behind their unpopular practice.

In June, the FTC had already rejected a Broadcom proposal to remedy its wrongdoings through a KRW20 billion voluntary correction scheme. In short, the Korean Competition authorities have not been forgiving in the prosecution of this case.

Source: Mobile Worls Wild