Tech

European Commission launches antitrust probe into Broadcom

The European Commission has opened an investigation into whether chipmaker Broadcom abused its market position to hurt rivals in its television and modem market.

Read more: Chipmakers shares plummet on Huawei ban hit

Margrethe Vestager, the EUs antitrust commissioner, is also set to order interim measures against the tech giant to stop its “suspected contractual restrictions”.

She warned there is a “risk of irreparable harm to the market”.

Interim measures:
We intend to order @Broadcom to halt its suspected contractual restrictions (to exclude its competitors from the market). Risk of irreparable harm to the market. @Broadcom is a big supplier of components for TV set-top boxes & modems. Now for @Broadcom to reply

— Margrethe Vestager (@vestager) June 26, 2019

Broadcom, which supplies chips for TV set-top boxes, smartphones and Wi-Fi modems, has said the accusations lack merit.

The alleged practices include contracts obliging customers to buy Broadcom chips exclusively and granting rebates based on such exclusivity or minimum purchase orders.

Broadcom also exercised “abusive IP-related strategies”, the Commission said, and deliberately harmed interoperability between Broadcom products and those of rivals.

“We suspect that Broadcom, a major supplier of components for these devices, has put in place contractual restrictions to exclude its competitors from the market,” Vestager said.

“This would prevent Broadcoms customers and, ultimately, final consumers from reaping the benefits of choice and innovation.”

Seven customers had agreed to buy systems-on-a-chip aRead More – Source

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