2023-08-13 01:20:00
The Fair Trade Commission will decide next month whether or not to impose sanctions on Broadcom, a US semiconductor company accused of forcing Samsung Electronics into a long-term contract to purchase smartphone parts.
According to the industry today (13th), the FTC will hold a plenary meeting on the 6th of next month to review Broadcom’s abuse of trading position.
Broadcom is accused of forcing Samsung Electronics to conclude a long-term contract (LTA) to purchase smartphone parts such as Wi-Fi and Bluetooth by using unfair means, such as stopping approval of new purchase orders, shipping existing orders, and suspending technical support (violation of the Fair Trade Act). receive.
According to this agreement signed in March 2020. Samsung Electronics must purchase more than $760 million of Broadcom’s parts annually for three years from 2021, and if the actual purchase amount falls short of that, it must compensate Broadcom for the difference.
Previously, the Fair Trade Commission consulted with Broadcom to prepare a resolution for consensus on the creation of a KRW 20 billion semiconductor win-win fund. The review process has resumed.
Consent resolution is a system that promptly closes a case without confirming whether it is illegal if a business operator suspected of violating the law voluntarily presents a reasonable corrective measure, such as restoring the original state or relieving damage.
At a plenary meeting in June to review whether to accept the resolution, Broadcom was in the position of ‘B’ as a company that manufactures parts under Samsung’s consignment, and the contract with Samsung Electronics was for mutual benefit. It was claimed that it was a contract between leading operators.
Broadcom’s agent said, “Samsung Electronics obtained all the conditions it wanted in return for the minimum purchase agreement.” I am doing it,” he replied.
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