[Reporter’s Notebook] Why Samsung Cannot Agree to Broadcom’s Consent Decree View original image

"It is difficult to accurately estimate the scale of the damage, but the 20 billion won mutual growth fund certainly exceeds the maximum possible fine that can be imposed." Regarding Broadcom's 'gapjil' behavior toward Samsung Electronics three years ago, a Fair Trade Commission official said this while unveiling the provisional consent decree prepared in consultation with Broadcom last January. This was an explanation in response to criticism that the scale of mutual growth proposed by Broadcom did not meet expectations.


As the full commission meeting of the Fair Trade Commission to finalize the consent decree is scheduled for this June, some discord is emerging. Samsung Electronics, the victim company, has expressed that it does not agree with the corrective measures. The 20 billion won fund is not intended for Samsung. It is a fund established for mutual growth in the semiconductor sector. A business community official hinted, "Samsung Electronics believes that the damage must be fully restored."


An expert well-versed in the Fair Trade Act said, "It is strange that the consent decree is being drafted in a way that no specific amount of damages is allocated to the victim company," adding, "If the consent decree is finalized without a damage compensation plan, companies will be blocked from practical damage recovery measures." Confirmation of illegality by the Fair Trade Commission is an important premise in damage compensation lawsuits, and if illegality is not confirmed and the consent decree is handled this way, the outcome of civil lawsuits is predictable.


The Fair Trade Commission also experienced complex internal struggles during the preparation of the consent decree. It is known that Samsung estimated the damage at several hundred billion won. A Fair Trade Commission official said, "The problem is that while Samsung expressed opinions on sanctions, it failed to clearly estimate and persuasively present the evidence for the claimed damages to the Fair Trade Commission." The perpetrator tends to minimize the damage scale, and the victim tends to exaggerate it. However, the role of the Fair Trade Commission is to gather each company's claims and derive a reasonable conclusion.



This case is delicate. With Samsung, the 'super subordinate,' being spotlighted as the victim company, it prompts consideration of an effective direction for the consent decree system. The opinion that the relief measures should include something acceptable to the victim company is worth listening to.


This content was produced with the assistance of AI translation services.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing