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Broadcom will cease to impose its chips on modem and TV manufacturers, otherwise it will be fined by the European Commission
08.10.2021 [12:47],
Vladimir Mironenko

Europe’s antitrust investigation into chipmaker Broadcom, which began last year, ends with impressive EU success.

REUTERS / Mike Blake

The European Commission announced last Wednesday that the American microchip maker Broadcom has abandoned exclusive agreements with TV and modem manufacturers, according to which they were required to purchase microchips only from him. This is part of a deal with the EU antitrust regulator that will allow the Broadcom investigation to end without any sanctions.

The European Commission launched an investigation into the company last June. After it was revealed that Broadcom had entered into contracts with companies to buy equipment only from it, the EC threatened to issue an interim order, the first in nearly two decades, to impose restrictions on the chipmaker while the investigation continued.

“Broadcom will suspend all existing agreements containing exclusivity or quasi-exclusivity agreements and / or provisions regarding the use of systems on a chip (SoC) for set-top boxes and Internet modems, and will not enter into new agreements that include such terms,” ​​- stated in a statement issued by the European Commission on Wednesday.

Broadcom also pledged not to enter into new agreements containing such terms for seven years. She has 30 days to remove any clauses in her contracts that violate a legally binding agreement with the EC.

In Europe, Broadcom will no longer offer price or other benefits to TV and modem manufacturers for the purchase of a minimum number of its products, and will not associate such purchases with sales of other products.

In the global market, with the exception of China, it also pledged not to offer price or non-price incentives to TV and modem manufacturers to purchase more than 50% of their products from it, and not to associate such purchases with the sale of other products within more than 50% of their sales.

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