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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission rejected the "self-relief plan" proposed by U.S. semiconductor company Broadcom in connection with its alleged power trip to Samsung Electronics.
The Fair Trade Commission said on the 13th that it has rejected a final motion to agree on Broadcom's abuse of its trading status at a plenary session held on the 7th. Instead of avoiding FTC sanctions over Samsung Electronics' power trip, Broadcom did not accept the voluntary correction plan, including damage relief. It is the first time that the FTC has rejected a voluntary correction plan since 2011 when it introduced a consent resolution system.
Broadcom forced a three-year long-term contract (2021-2023) by supplying essential smartphone components such as Wi-Fi to Samsung Electronics. During the contract period, Samsung Electronics was an unfair trade that had to pay Broadcom as much as the difference if it did not purchase parts worth more than $700 million every year. The Fair Trade Commission launched a Broadcom investigation after a report by Qualcomm, a rival in the US information and communication industry.
During the investigation, the FTC accepted Broadcom's application in August last year and began the consent process. Since then, the examiner of the Fair Trade Commission and Broadcom have consulted to come up with a voluntary correction plan in January this year that calls for creating 20 billion won in a win-win fund to foster semiconductor small and medium-sized businesses and human resources.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
