Samsung Electronics Co Ltd. is facing a potential investigation by South Korea ’s Fair Trade Commission following press composition that it sold NAND flash computer storage chip to Apple at below - marketplace prices .
“ We have not get going an probe yet but we are reviewing the case ” say Yi Seuk - joon , who heads the Competition Policy Division of the Korea Fair Trade Commission ( KFTC ) .
He added that while there had been no complaints from contender , the commission was following up on local press news report alleging unfair pricing of chips , which could smart minor contender .
Yi expected the commission to decide whether to launch a full - plate investigating “ after next month . ” Declining to mention the penalty Samsung could face if found in breach of regularisation , Yi enounce it was “ too other ” to hash out the take .
A Samsung interpreter say the company is join forces with authorities but would not make further comment .
Samsung begin supplying NAND flash memory chips , used in music instrumentalist and digital camera , to Cupertino , California - based Apple in the third fourth . The chips are used in Apple ’s novel iPod Nano music player , which stores information on flash memory .
It has been an up - and - down week for the Korean company .
On Monday , Samsung extended an understanding with Apple by signing a prospicient - term contract bridge to provide NAND flash chips through 2010 . Apple will give Samsung US$ 500 million in advance . On the same day , Korea ’s number two chipmaker , Hynix Semiconductor Inc. , also agree with Apple to add NAND buffalo chip in a retentive - term contract .
On Tuesday , Samsung announce an understanding with U.S.-based fabless semicon designer Qualcomm Inc. to produce CDMA ( Code Division Multiple Access ) and WCDMA ( Wideband CDMA ) chipsets . The deal strengthens Samsung ’s non - memory operation , while give Qualcomm a stable outsourcing issue for chips . South Korea , Japan and the United States are the main markets for Qualcomm ’s nomadic chip .
This week ’s tilt with the KFTC , uncover Wednesday , is not Samsung ’s first .
Samsung Electronics is the flagship of Samsung Group , Korea ’s largest , most successful and most powerful pudding stone . The group , has filed a lawsuit with the Constitutional Court against the KFTC , which has shout out it shareholdings in financial affiliate excessive .
Though widely respected in Korea for its worldly concern - beating stain management , byplay insightfulness and technical art , many allege Samsung is too powerful . Some media have even dubbed South Korea “ The Republic of Samsung . ”
The group school principal , Lee Kun - hee , was this year implicate in an alleged graft scandal that result in the callback of the U.S. ambassador to Washington . Lee has refused summons to appear for call into question before two separate National Assembly committees .
