Samsung Decision: Fine for late merger control notification
The South Korean company Samsung was fined for late notification of its acquisition of control over the American firm AST Research Inc., and for enforcing the operation without the Commission’s authorisation. The Commission found that Samsung acquired control of AST at least in January 1996 while the operation was notified only on 22 April 1999. Samsung and AST operate respectively in the manufacturing and sale of electronic goods and personal computers.
Samsung argued that the violation of the merger rules was not committed in bad faith, but merely for error caused by unfamiliarity with the EC definition of concentrations. The Commission stated that the Merger Regulation does not afford for a similar distinction and clearly covers both intentional and negligent circumventions. The issue was also relevant in determining the amount of the fine.
The Commission considered that the 14 months of circumvention represented a significant period. It also took into account the following mitigating factors: the operation did not raise any competition concern, Samsung voluntarily informed the Commission of its failure, Samsung had recognised the breach and co-operated with the Commission in its investigations, the infringement was not intentional but merely negligent, and the Commission never before imposed similar fines.
The Commission imposed a fine of Euros 5,000 for failure to notify and a fine of Euros 28,000 (Euros 2,000 for each month of delay) for having put into effect the operation without the Commission’s authorisation. (OJ L225 26.08.99)
