Court Dismisses Broadcom's Lawsuit Contesting 19.1 Billion Won Fine for "Abuse of Power Against Samsung Electronics"

"Plaintiffs Ordered to Bear All Litigation Costs"

The U.S. semiconductor company Broadcom filed an administrative lawsuit contesting the Fair Trade Commission (FTC)'s fine, which was imposed for forcing Samsung Electronics into an unfavorable contract and disrupting fair trading practices. However, the court dismissed the case.

Han Kijeong, former chairman of the Fair Trade Commission, is briefing on the sanctions against abuse of dominance by four companies including American semiconductor firm Broadcom on the morning of September 21, 2023, at the Government Complex Sejong in Sejong City. Photo by Yonhap News

On the 13th, the Seoul High Court's Administrative Division 6-1 (Presiding Judges Park Youngjoo, Kim Mingi, and Choi Hangseok) dismissed all claims in the lawsuit filed by Broadcom and three other companies against the FTC seeking to revoke corrective orders and penalty payment orders. The court also ruled that the plaintiffs must bear all litigation costs.

Previously, in September 2023, the FTC recognized Broadcom's violation of the Fair Trade Act and imposed a corrective order and a fine of approximately 19.1 billion won.

At the time, the FTC determined that Broadcom pressured Samsung Electronics during the supply process for smartphone components by suspending purchase order approvals and shipments, thereby forcing Samsung Electronics to sign a long-term agreement (LTA) requiring the purchase of components worth at least $760 million (approximately 1.1335 trillion won) annually over three years.

During the trial, Broadcom argued, "Samsung Electronics was a much larger trading partner, and the contract was simply the result of negotiations." In contrast, the FTC countered that Broadcom's abuse of power deprived Samsung Electronics of opportunities to adopt competitors' products and forced the company to incur additional costs, resulting in tangible damages.

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