Republic of Korea: Issued ruling in FTC investigation into Broadcom for alleged unfair business conduct

On 21 September 2023, the Korean Fair Trade Commission (FTC) issued corrective orders and imposed a preliminary fine of KRW 191 billion against Broadcom, which, allegedly through unfair means such as suspending parts shipments, compelled Samsung Electronics to unilaterally disadvantageous long-term agreement (LTA) regarding parts supply. Samsung Electronics relied on Broadcom for the majority of advanced, high-performance components used in high-end premium smart devices. Allegedly, Broadcom developed a strategy to pressure Samsung Electronics into signing an LTA agreement, ensuring long-term revenue, preventing Samsung Electronics from leaving as a competing supplier. FTC alleges that Broadcom employed a series of unfair means, including suspending parts shipments, to pressure Samsung Electronics into signing an LTA agreement.