Why did South Korea’s Fair Trade Commission fine Broadcom over its dealings with Samsung Electronics?

The FTC said Broadcom used its superior position to compel Samsung to sign a long-term agreement in 2020. The agreement set an annual minimum purchase of Broadcom smartphone parts and required Samsung to compensate Broadcom if purchases fell short.

What happened in Broadcom’s court challenge to the Fair Trade Commission fine?

Broadcom sued the FTC in November 2023. The Seoul High Court ruled against the company in May, finding the fine justified, and the Supreme Court upheld the lower court ruling.

What did Broadcom’s agreement require Samsung Electronics to purchase, and over what period?

The agreement required Samsung to purchase at least $760 million worth of Broadcom smartphone parts each year from 2021 through 2023. If Samsung’s purchases fell below that amount, it had to compensate Broadcom for the shortfall.

Top court upholds antitrust watchdog's $13.8 mil. fine on Broadcom

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Summary

South Korea’s Supreme Court upheld the Fair Trade Commission’s 18.6 billion-won fine against Broadcom for unfair business practices involving Samsung Electronics. The ruling followed Broadcom’s challenge to the FTC decision and a Seoul High Court ruling against the company in May. The FTC said Broadcom used its superior position to require Samsung to sign a long-term agreement in 2020.

Key Facts

The FTC imposed the fine in 2023.
The agreement required Samsung to buy at least $760 million worth of Broadcom smartphone parts annually from 2021 to 2023.
Broadcom was required to compensate Samsung for any shortfall if its purchases fell below the annual amount.
Broadcom filed its lawsuit challenging the FTC decision in November 2023.
An FTC decision challenged in court is reviewed by the Seoul High Court, whose ruling can be appealed to the Supreme Court.

By Yonhap

Published Nov 2, 2026 9:58 pm KST
Updated Nov 2, 2026 10:05 pm KST

The Broadcom logo is seen in this photo illustration created June 11. Reuters-Yonhap

Korea's top court has upheld the country's antitrust watchdog's decision to impose an 18.6 billion won ($13.8 million) fine on U.S. chipmaker Broadcom Inc. for unfair business practices against Samsung Electronics, sources said Monday.

According to the sources, the Supreme Court on Tuesday upheld a lower court ruling against Broadcom in a lawsuit the U.S. company filed against the Fair Trade Commission (FTC).

In 2023, the FTC fined Broadcom for using its superior position to force Samsung to sign a long-term agreement in 2020.

According to the watchdog, Broadcom compelled Samsung to purchase at least $760 million worth of its smartphone parts annually from 2021 to 2023 and required the South Korean tech giant to compensate for any shortfall if its purchases fell below that amount.

Broadcom filed a lawsuit challenging the FTC's decision in November 2023.

In May, however, the Seoul High Court ruled against Broadcom, finding the fine justified.

An FTC decision, when challenged, is reviewed by the Seoul High Court, whose ruling can be appealed to the Supreme Court.

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