- Title: Broadcom ordered to stop exclusivity deals till EU probe ends
- Date: 16th October 2019
- Summary: SINGAPORE (FILE - NOVEMBER 6, 2017) (REUTERS) VARIOUS OF EXTERIORS OF BROADCOM'S SINGAPORE OFFICES
- Embargoed: 30th October 2019 10:18
- Keywords: agreement Broadcom European Commission EU investigation competition U.S. chipmaker Vestager roundtable antitrust enforcers
- Location: SINGAPORE / BRUSSELS, BELGIUM
- City: SINGAPORE / BRUSSELS, BELGIUM
- Country: Belgium
- Topics: European Union,Government/Politics
- Reuters ID: LVA001B1CKX1J
- Aspect Ratio: 16:9
- Story Text: EU antitrust regulators on Wednesday (October 16) ordered U.S. chipmaker Broadcom to halt exclusivity deals with six TV and modem makers for up to three years while EU antitrust enforcers investigate whether these agreements are aimed at thwarting rivals.
The move by European Competition Commissioner Margrethe Vestager suggests she may be more willing to take temporary but rapid action against tech giants deemed to be abusing their dominance rather than wait for investigations to be finalized.
This is the first such order in 18 years.
The European Commission had in June warned Broadcom of a possible interim measure. The company, whose chips power smartphones, computers and networking equipment, is a major supplier to Apple.
The Commission said Broadcom has 30 days to comply with the order, which is valid for up to three years, an estimate of how long the EU investigation will take.
The EU regulator said certain provisions in the deals with six of its major customers are likely to cause serious and irreparable harm to the competition as well as affect future tenders related to the introduction of WiFi 6 standard for modems and TV set-top boxes.
The competition enforcer's concerns center on Broadcom's deals with six TV set-top box and modem makers which result in the companies buying various chips exclusively or almost exclusively from the company.
Contentious practices include tying rebates or other benefits to exclusive or minimum-purchase requirements. Reuters reported on Oct. 4 that the Commission would order Broadcom to suspend these practices.
(Production: Clement Rossignol)
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