Taiwanese authorities has started probing the allegations of HTC against Samsung. The HTC had registered a case last week in which it alleged that Samsung had hired students in Taiwan to criticize HTC products and recommend Samsung products to the customers by posting articles online.
According to the Fair Trade Commission spokesman Sun Lih-chyun :
The case was set up last week after we received complaints and probe would look into allegations that Samsung engaged in false advertising and that if the allegations were upheld, Samsung and its local advertising agent could face a fine of up to Tw$25 million ($835,000).
According to the United Evening News, the issue had been noticed earlier this month when some Internet users alleged that Samsung, through its local agent, had hired students to write online articles attacking HTC and recommending Samsung cellphones.
However Samsung Taiwan has denied to receive any notice regarding the probe by the Fair Trade Commission, but it has halted all Internet marketing such as posting articles on websites at the moment.
This is not the first action from Samsung that could face a fine, the company was earlier fined NT$300,000 by FTC for a misleading advertisement about the camera functions on Samsung’s Galaxy Y Duos GT-S6102 smartphone.