It seems that a few of the big Korean manufacturers and network carriers haven’t been playing fair. The South Korean Fair Trade Commision found that Hardware companies Samsung, LG and Pantech have been collaborating with the big 3 carriers KT, LG Uplus and SK Telecom in order fix prices. The investigation showed that the manufacturers were raising the price of handsets in order to subsidise discounts for the carriers thus creating the illusion to the customer that they’re getting a good deal. It may sound like standard practice to many of us however the FTC felt fit to impose some pretty hefty fines as punishment.
Over $40 million in fines were shared amongst the 6 firms with Samsung and SK Telecom hit the hardest picking up $12.6 million and $17.8 million fines respectively. Furthermore the FTC have imposed a series of sales restrictions in order to prevent similar practices in the future.
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