Samsung, Qualcomm will fight together against Broadcom

Samsung and Qualcomm will unite in an antitrust dispute trial against Broadcom. Both firms have agreed to do so as they have suffered from long-term exclusivity agreements that the US-based semiconductor company demanded they sign.

Per the Korea Fair Trade Commission (KFTC) and BusineesKorea sources, a representative of Qualcomm will attend a KFTC plenary session on Broadcom in June. “Qualcomm has expressed its intention to stand as a witness for Samsung Electronics.”

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Broadcom was put under investigation by the KFTC for allegedly forcing Samsung to sign long-term contracts for buying smartphone components for three years. Last year, Broadcom submitted a consent resolution plan to provide $15 million as a win-win fund to companies that suffered damages.

The Korea Fair Trade Commission plenary session will determine whether the organization will finally accept or reject Broadcom’s proposal. If the consent resolution is finally accepted, the case will be closed and Broadcom will avoid legal penalties.

Samsung is opposing the consent resolution, arguing that Broadcom’s proposed $15 million win-win fund falls far short of the actual damages it caused. It demands that Broadcom promise to compensate for huge damage or substantial sanctions such as fines be imposed on Broadcom.

Yesterday’s enemy becomes today’s friend

Qualcomm will participate in the KFTC’s plenary session next month to lend its support to Samsung. It was Qualcomm, not Samsung, that reported Broadcom’s abuse of power to the KFTC in the first place.

Although it asserted that Broadcom’s enforcement of a long-term contract with Samsung prevented Qualcomm from selling its products to Samsung, Qualcomm also had a reason to seek a war of revenge against Broadcom.

Broadcom had previously reported Qualcomm to the KFTC over rebates. In 2009, Qualcomm was fined more than $151 million. In 2017, Broadcom attempted to acquire Qualcomm but failed due to opposition from US authorities.

Qualcomm was accused of using its patent rights to collect excessive fees while selling components to Samsung. In 2017, the KFTC caught Qualcomm on that charge and fined Qualcomm $755 million.

It was the largest-ever fine levied on a single company in the history of Korea. Qualcomm sued, claiming the penalty was unfair, but after more than six years of legal battles, the Supreme Court upheld the fine in April.

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