Samsung In Taiwan Probe Over HTC Reviews

Samsung is being investigated over claims it paid students to post malicious online comments about rival phone-maker HTC.

Authorities in Taiwan say the move follows complaints that people had been instructed to write articles recommending Samsung and criticising HTC, a Taiwanese company.

The probe could lead to penalties for false advertising and a potential fine of up to Tw$25 million (£550,000).

Precise details of the comments or where they were posted have not been confirmed.

Samsung Taiwan said the Fair Trade Commission had not yet informed it of the investigation.

However, a statement on its Facebook page said it regretted "any inconvenience and confusion from the internet event".

"Samsung Taiwan has halted all internet marketing such as posting articles on websites," it added.

Earlier this year, Samsung was also fined Tw$300,000 by the commission for a misleading advertisement about the camera functions on Samsung's Galaxy Y Duos phone.

South Korean firm Samsung controls around a third of the global smartphone market while HTC - which has seen profits slump over the last year - has 4.6%.

Fake reviews are thought to be on the rise as the web becomes increasingly social and businesses wise up to the influence they can have over consumers.

The New York Times last year reported on one company which made $28,000 (£18,000) per month writing "marketing reviews" for aspiring authors.

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