"Unfair Transaction Delays" vs. "Favorable to Samsung"
KFTC and Broadcom
Dispute Over 19.1 Billion Won Fine Cancellation
Regarding the incident in which Samsung Electronics was reportedly subjected to so-called "power harassment," global semiconductor design specialist (fabless) company Broadcom and the Korea Fair Trade Commission (KFTC) clashed over the "impropriety of contract execution methods." On August 20, the Seoul High Court's Administrative Division 6-1 (Judges Hwang Uidong, Choi Hangseok, and Baek Seungyeop) held the fifth hearing in Broadcom's lawsuit seeking to overturn the KFTC's corrective order and fine payment order.
Broadcom's legal representative argued, "We only temporarily delayed transactions in order to fairly change the component supply contract in favor of Samsung Electronics," and insisted, "No unfair methods were used." In response, the KFTC's representative countered, "Broadcom delayed transactions to secure over 1 trillion won in sales from Samsung Electronics over three years," and added, "This does not conform to established practices."
In September 2023, the KFTC imposed a fine of 19.1 billion won on Broadcom and issued a corrective order. This was due to Broadcom's demand in 2020 for a long-term supply contract for smartphone components worth over 1 trillion won over three years from Samsung Electronics, during which it allegedly used unfair means such as halting component shipments and suspending technical support to enforce the deal. The KFTC determined that Broadcom had engaged in "unfairly using its superior bargaining position in transactions," as stipulated in Article 45, Paragraph 1, Item 6 of the Monopoly Regulation and Fair Trade Act.
At the trial, four legal representatives appeared on behalf of Broadcom, including lawyer Jung Sujin (age 49, Judicial Research and Training Institute class 32) from law firm Kwangjang. Representing the KFTC were two lawyers, including Choi Yeonseok (age 47, class 36) from law firm WeAdvisors.
The appellate court announced that it would conclude the hearing procedures at the sixth hearing scheduled for November 26.
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Lee Sangwoo, Legal Times Reporter
※This article is based on content supplied by Law Times.
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