The Commerce Department said today that Seagate will pay $300 million in penalties, for export violations.
Export violations in favor of Huawei; Image: PCMag
The U.S. Department of Commerce said today that Seagate will pay $300 million in penalties for supplying hard drives to Huawei between August 2020 and September 2021. Warned of an allegation, Seagate was notified in October last year.
The U.S. passed a law in August 2020 barring sales of hardware to certain Chinese companies. One company on the blacklist is Huawei, to which Seagate has shipped hard drives. That gave Seagate a financial advantage over competitors such as Western Digital and Toshiba.
Seagate will now have to pay $15 million per quarter over the next 5 years. The first payment is due in October.
