European Union Orders Broadcom To Stop Applying Exclusivity Deals

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The European Commission has ordered  Broadcom to halt exclusivity deals with its major six major TV and modem makers. It’s alleged that the deals are thwarting similar competitors in the market, leading anti-competitive practices by Broadcom.

US chipmaker was warned by the European Union in June over abusing its dominance in the market. In the press release by European Commission, Margrethe Vestager, the Commissioner of Competition Policy said “We have strong indications that Broadcom, the world’s leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anticompetitive practices,” before the investigation was finalized.

The Penalties by EU

European Commission doesn’t frequently slump companies with anti-competitive practices allegations. Earlier this year, Google ended the 10 years battle with the European Union after paying the third antitrust sanction amounting $1.7 Billion fine. In 2017 and 2018, Google was hit with the record-breaking $4.78 Billion and $2.65 Billion penalties.

Now. the Commissioner said that Broadcom has just 30 days to comply with interim measures.” We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation. We, therefore, ordered Broadcom to immediately stop its conduct.,” she mentioned in the statement.

The press release also mentioned that the interim measures will apply for up to three years or the date of the final completion of the case. EU started the investigation against Broadcom a year ago.

It also said that if Broadcom continues to practice the conduct, it can cause irreparable harm to the vendors that would be launched in the future.

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