[NX] [Gam] Nexon Responds To Fair Trading Commission Decision In Gamania Share Scandal
What happened is that Nexon had been gobbling up shares of Taiwanese online gaming firm Gamania for years now. However, takeovers of companies with a market share of over 25% must be filed to the Free Trading Commission (FTC) prior to the transaction. Nexon failed to do so, even though by FTC’s definition of the market that Gamania sits in Gamania has a market share of over 25%. Nexon argues that this is not so by their definition of the market that Gamania occupies. But the FTC has investigated and has made the decision to fine Nexon 900,000 Taiwanese dollars.
Nexon has responded to the decision.
July 4 2012
Nexon today has been informed of the decision made by the Fair Trade Commission (FTC), which has ruled that Nexon was subject to merger filing pursuant to the Fair Trade Act regarding its acquisition of Gamania shares. It is regretful to learn that the FTC and Nexon have had different viewpoints on the definition of the relevant gamemarkets and the market shares of the respective companies therein. As the issues on the market definition and market share are quite controversial among industries, Nexon will re-consider and verify the facts, data or evidences on which the FTC formed its decision andmay seek any remedy.
Nexon has always maintained a long-term commitment to the growth of the Taiwanese digital game market ever since Nexon and Gamania’s partnership began in 2005. As the major shareholder of Gamania, Nexon highly values the relationship and continues to holda strong and positive business outlook for Gamania and the Taiwanese digital game market. We believe we have delivered some of the top games in the Taiwanese market to this day and will continue to strive to bring such innovative content to local gamers andthereby support the further development of the digital game industry in Taiwan.
Nexon’s statement from ThisIsGame.