The Great Smartphone War: Apple vs. Samsung

Kurt Eichenwald, in a well-reported feature for Vanity Fair:

One day in March 2011, cars carrying investigators from Korea’s anti-trust regulator pulled up outside a Samsung facility in Suwon, about 25 miles south of Seoul. They were there ready to raid the building, looking for evidence of possible collusion between the company and wireless operators to fix the prices of mobile phones.

Before the investigators could get inside, security guards approached and refused to let them through the door. A standoff ensued, and the investigators called the police, who finally got them inside after a 30-minute delay. Curious about what had been happening in the plant as they cooled their heels outside, the officials seized video from internal security cameras. What they saw was almost beyond belief.

Upon getting word that investigators were outside, employees at the plant began destroying documents and switching computers, replacing the ones that were being used — and might have damaging material on them — with others.

A year later, Korean newspapers reported that the government had fined Samsung for obstructing the investigation at the facility. At the time, a legal team representing Apple was in Seoul to take depositions in the Samsung case, and they read about the standoff. From what they heard, one of the Samsung employees there had even swallowed documents before the investigators were allowed in. That certainly didn’t bode well for Apple’s case; how, the Apple lawyers said half-jokingly among themselves, could they possibly compete in a legal forum with employees who were so loyal to the company that they were willing to eat incriminating evidence?

Eichenwald’s is the best overview of the Apple-Samsung rivalry I’ve seen; nothing else even comes close.

Monday, 5 May 2014

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