On October 27, the Korean Supreme Court issued a final ruling in the Broadcom abuse of market position case, rejecting Broadcom's appeal and upholding the original judgment. Broadcom was fined KRW 18.664 billion, about RMB 93.32 million. Per Korean legal sources on November 2, the Supreme Court's First Division dismissed the lawsuit filed by Broadcom's US headquarters and affiliates against the Korea Fair Trade Commission (KFTC).
In September 2023, the KFTC found Broadcom abused its trading position and violated the Fair Trade Act, issuing a corrective order and the KRW 18.664 billion fine. The investigation found Broadcom pressured Samsung Electronics by threatening to cut off smartphone component supply, forcing it to sign a long-term agreement clearly favorable to Broadcom. In March 2020, the two signed a contract requiring Samsung to buy at least $760 million per year of Broadcom RF front-end components and Wi-Fi and Bluetooth parts for three consecutive years from 2021; if Samsung fell short, it had to compensate the difference.
The KFTC found Broadcom used improper tactics—suspending purchase order approvals and halting product shipments and production—to force Samsung into clearly unfavorable terms. It noted Broadcom held an overwhelming share and ranked first globally in RF front-end markets; to avoid disrupting production of new models like the Galaxy S20, Samsung had no choice but to accept Broadcom's unilateral demands.
Broadcom sued in November 2023. The Seoul High Court ruled in May 2026 that the KFTC's penalty was reasonable and Broadcom lost. Broadcom appealed, and the Supreme Court dismissed it, finalizing the case.
ICgoodFind Summary: Broadcom was fined KRW 18.664 billion in a final Supreme Court ruling for pressuring Samsung with supply cutoffs to force a minimum-purchase contract. The case's backdrop is the highly concentrated RF front-end market—the ruling directly addresses how device makers' bargaining room shrinks when key component supply depends on a single dominant supplier.
