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Semiconductor industry

South Korea's Antitrust Regulator Investigates Multinationals Over Fair Trade Concerns

Strategic Insights

— 1 min read

The Fair Trade Commission of South Korea is probing several major multinationals, including Oracle Corp., Intel Corp., Samsung Electronics Co., and Toyota Motor Corp., over allegations of unfair trade practices. The regulator is scrutinizing the companies for their business activities, which may be hindering competition and violating fair trade rules. The investigations were sparked by complaints from local companies and civic groups, who argue that these foreign firms are engaging in malpractices such as bundled software, false advertising, and deceptive business practices.

Key Takeaways:

  • The Fair Trade Commission is investigating Oracle Corp. over allegations that Tmax Soft Co. claimed the rival bundled database management software with its other products, unfairly inhibiting competition.
  • The FTC is also scrutinizing Intel Corp. following the company's case in Japan, where it was ordered to end the practice of providing rebates to computer makers in exchange for using solely its CPUs.
  • Samsung Electronics Co. is under investigation for its V4400 model mobile phone, which may not meet the standards shown in its advertisements.
  • Toyota Motor Corp. is being probed for making false claims about the engine output of its best-selling Lexus model, with the company initially reporting 280 horsepower to U.S. car officials but advertising 293 horsepower in South Korea.
  • The Fair Trade Commission has a nine-person decision-making body, which makes the final ruling on the investigations.
  • The regulator was also looking into whether Intel had conducted similar business activities in South Korea.

Statistics:

  • 4 major multinationals are being investigated by the Fair Trade Commission: Oracle Corp., Intel Corp., Samsung Electronics Co., and Toyota Motor Corp.
  • 2 local companies, Tmax Soft Co. and a civic group, have filed complaints against the foreign firms, alleging unfair trade practices.
  • 1 case from Japan involving Intel Corp. was cited in the investigation.
  • The Fair Trade Commission has not disclosed whether any company has broken any laws.
  • The regulator has a policy of not releasing information until its decision-making body makes a ruling.

Sources:

  • Yonhap (exact text as provided)

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