Nexon was fine for acquiring shares illegally in Taiwan

Nexon has to pay a fine regarding its acquisition of Gamania shares.

Fair Trade Commission (FTC) held that Nexon must pay 900,000 Taiwan dollars as a fine for acquiring Gamania’s share illegally. In addition, Nexon needs to sell shares of Gamania or follow report procedure. If Nexon won’t, 50 million Taiwan dollars of additional fine could be addressed.

Currently Nexon is the major shareholder of Gamania with 34.6% of shares. According to laws of Taiwan, if one has more than the one third of the total capital or shares, it could be considered as a merger. If one being acquired is occupying the one fourth of a market, the company who acquires must report it to Taiwan government.

Gamania has been a partner of Nexon since 2005 and published Nexon’s online games such as Maple Story, Kartrider, Vindictus for Taiwan.

Nexon announced the statement regarding FTC’s decision like below on the 4th of July.

 

Nexon’s Statement

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.

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