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November 23, 2005

Samsung’s deal with Apple under investigation

Samsung Electronics Co Ltd is currently under investigation by a South Korean regulatory body following accusations that it supplied Apple Computer Inc with flash memory chips at an unfairly low price.

By CBR Staff Writer

The allegation was initially raised by South Korean ruling Uri Party lawmaker Kim Hyun-mi at a parliamentary audit by the Fair Trade Commission and was supported by the complaints of smaller South Korean manufacturers of digital music players.

Samsung will have to answer to officials from regulatory bodies such as Korea’s Fair Trade Commission, which will want some explanations as to why cheaper prices were granted to Apple than were granted to smaller firms.

However, suggesting that the investigation is unlikely to pose any serious implications for Samsung, the company’s share price has already recovered from an earlier 5% fall.

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