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News
Samsung-Apple Flash Deal May Bring Korean Govt. Scrutiny
Sunday, October 9th, 2005 at 3:00 PM - by Brad Cook
Samsung's agreement to sell 40% of its flash memory output to Apple at reduced prices could bring scrutiny from Korea's Fair Trade Commission (FTC). The agency's chairman, Kang Chul-kyu, told CBS radio over the weekend that the FTC "could take action" if Korean MP3 player manufacturers request it, according to a report at The Korea Times.
Apple's deal with Samsung has enabled it to sell the flash-based iPod nano for less than comparable flash-based MP3 players, forcing competitors to cut their prices. Reporter Seo Jee-yeon wrote that the Korea Portable Audio Consortium (KPAC) interest group estimated that a 10% price gap exists between what Apple paid and what its competitors are paying Samsung.
"The KPAC has yet to decide whether to take file to the FTC," Mr. Jee-yeon reported.
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