The European Commission (EC) will fine Samsung Electronics for waiting a year before approaching it to request approval for the acquisition of AST Research.
The fine will make EC history, being the first of its kind. According to sources close to the EC, it will be a small, symbolic amount, to indicate that the EC will use its powers if necessary.
Samsung placed a bid in April 1997 to acquire AST - over a year before asking for EC approval. It also went ahead with the deal without seeking approval first.
The EC was likely to reprimand the manufacturer for its oversight, rather than punish it severely, as a measure to protect against anti-competitive or monopoly issues in the future.
European Union laws states that a company can be fined about $50,000 if it does not file for approval within a week of any takeover bid.
An additional penalty of up to 10 per cent of worldwide turnover can be imposed if a deal is completed without EC consent.
The rules apply to companies trading in Europe, regardless of which country they are based in.
CRN pulls out the key information from Microsoft's Q4, which took the vendor above $100bn for the year
Investment will include an AI research centre in London
John Coulston outlines Rackspace's plans to partner with the channel in the UK
Chris Bunch of Microsoft partner Cloudreach gives his take on this year's Inspire conference