FTC charges Broadcom with ‘illegally monopolizing’ the chip industry

Broadcom is going through a significant antitrust crackdown. Gizmodo reports that the Federal Trade Commission has charged Broadcom with “illegally monopolizing” the markets for broadband and TV chips, together with WiFi components. The FTC claimed that Broadcom struck unique offers with distributors and repair suppliers that prevented them from shopping for chips from rival suppliers.

The FTC additionally accused Broadcom of acquiring “exclusivity and loyalty commitments” for chip provides, making it troublesome for corporations to compete on their very own deserves. The vote was close to unanimous, though newly put in Commissioner Lina Khan bowed out.

The Commission’s proposed motion would forbid Broadcom from negotiating sure exclusivity and loyalty offers, bar the firm from conditioning chip entry based mostly on commitments, and ban retaliation in opposition to prospects who buy from Broadcom’s rivals.

Broadcom signalled to Engadget that it would cooperate on a settlement. It nonetheless disagreed with the FTC’s portrayal and claimed that it did not break the regulation. You can learn the full assertion under.

The chipset big hasn’t precisely received favor from regulators in recent times. It spent 2017 and 2018 aggressively trying to buy Qualcomm, solely to surrender after the White House blocked the deal. We would not anticipate regulators to make too many concessions because of this, even when a settlement appears probably. Broadcom hasn’t been shy about desirous to dominate the chip enterprise — the FTC will need assurances the firm will not push boundaries in the future.

“We are pleased to move toward resolving this Broadband matter with the FTC on terms that are substantially similar to our previous settlement with the EC involving the same products. While we disagree that our actions violated the law and disagree with the FTC’s characterizations of our business, we look forward to putting this matter behind us and continuing to focus on supporting our customers through an environment of accelerated digital transformation. We are equally pleased that the FTC investigation into our other businesses has been closed without action.”

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