Samsung, LG lose legal battle with Whirlpool over washing machines
Jan 12, 2017 07:44 AM EST
Samsung and LG are two of the biggest electronics company in the world. They usually battle other companies like Apple or Google but they were involved in a legal case against Whirlpool in late 2015. The United States International Trade Commission has found that Samsung and LG have "caused injury" to the American appliance industry.
The Michigan-based company, Whirlpool, filed a petition back in December 2015 against Korean companies Samsung and LG, per the Wall Street Journal. Whirlpool wanted the U.S. government to impose duties on washing machines made by both companies in China.
The U.S. International Trade Commission took the case and it lasted for over a year. The commission has found that Samsung and LG violated U.S. and international trade laws by selling China-made washers in the United States at a loss, BGR.com reported.
It should be noted that Samsung and LG were also found guilty of doing the same thing back in 2013. At that time, the companies were using washing machines made in Korea and Mexico, not in from China. Nevertheless, the commission imposed anti-dumping duties on both companies - 52.51 percent for Samsung and 32.12 percent.
According to Cleveland.com, Samsung and LG got lucky since the proposed duties were higher. It was 112 percent for Samsung and 50 percent duties for LG. Both Korean companies have released separate statements regarding the decision by trade commission.
Samsung believes that commission got it all wrong but had no choice but to obey the verdict. However, they bragged about the $16 billion investment they made to the United States. The company built a huge facility, which was one of the biggest direct investments in America, in Austin, Texas.
On the other hand, LG disagreed with the commission and claimed that their washing machines are high-priced than American brands. They noted that their success in the washing machine industry was due to innovations and not cheap pricing.
Whirlpool chairman and CEO, Jeff Fettig, also released a statement regarding the ruling. He called it a "gratifying win" for American manufacturing companies and all of their 3,000 employees based in Clyde, Ohio.