Taiwanese authorities say they have launched an investigation into allegations South Korean technology giant Samsung hired students to post malicious comments online about Taiwanese rival HTC.

"The case was set up last week after we received complaints," said Fair Trade Commission spokesman Sun Lih-chyun.

Tactics questioned: Samsung Taiwan.

He said the probe would look into allegations that Samsung engaged in false advertising and that if the allegations were upheld, Samsung and its local advertising agent could face a fine of up to $Tw25 million ($809,000).

Complaints emerged this month, with internet users alleging that Samsung, through its local agent, had hired students to write online articles attacking HTC and recommending Samsung phones, the United Evening News said.