$300 million fine for selling HDD to Huawei
Seagate because of production The storage memory is known to have to pay a financial penalty to Huawei for selling hard drives. In addition to financial fines, this company is also dealing with a series of non-financial fines.
According to Android AuthorityThe US Department of Commerce says that Seagate violated sanctions imposed by the US government on the Chinese company when it sold hard drives to Huawei. Apparently, Seagate sold more than 7.4 million hard drives worth $1.1 billion to Huawei between 2020 and 2021.
Huawei has been blacklisted by the US Department of Commerce since 2019 due to what the US calls a “threat to national security” and “espionage for China”. Since then, we have seen Huawei’s restrictions increase several times.
Huawei cannot buy any hardware or software from American companies due to being on the black list of the Ministry of Commerce. The US has also said that Huawei cannot acquire foreign products made with US technology. Of course, some companies such as Intel and Qualcomm still have limited cooperation with Huawei by obtaining a direct license from the US government.
Despite the Huawei ban coming into effect in 2020, Seagate continued to sell hard drives for another year. Other Huawei suppliers cut off business with the company completely, and Seagate became the sole supplier of hard drives to the Chinese company.
Seagate said in a statement that it believed drives made in foreign countries would not be covered by US sanctions. The company has agreed to pay a $300 million fine to the US government. Seagate will pay the fine in quarterly installments of $15 million.
Seagate has also agreed to have its compliance with US sanctions reviewed by independent bodies. In addition, this company is subject to a five-year suspension of its export privileges.