Tuesday, November 22, 2005

Watchdog Probes Samsung's Apple deal

A Reuters newswire article, via Yahoo! News, reports that:

South Korea is investigating a flash memory supply deal between Samsung Electronics Co. Ltd. and Apple Computer Inc. over pricing, officials at the Fair Trade Commission (FTC) said on Wednesday.

South Korean manufacturers of digital music players have complained Samsung is offering the chips used in Apple's iPod MP3 players at an unfairly low price, putting them at a disadvantage.

News of the probe came a day after Apple said it would prepay Samsung and Hynix Semiconductor Inc. $500 million and $200 million, respectively, to secure flash memory chips for its market-leading iPod music players.

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