“Broadcom is a monopolist”: FTC orders chipmaker to cease unlawful ways

A Broadcom sign outside one of its offices.

Enlarge / An indication in entrance of a Broadcom workplace on June 03, 2021, in San Jose, California. (credit score: Getty Photos | Justin Sullivan )

The Federal Commerce Fee on Friday mentioned it charged Broadcom “with illegally monopolizing markets for semiconductor parts used to ship tv and broadband Web providers” by stopping prospects from buying from different distributors. The FTC concurrently introduced that it reached a settlement with Broadcom that requires the corporate to “cease requiring its prospects to supply parts from Broadcom on an unique or near-exclusive foundation.”

The FTC mentioned that “Broadcom is a monopolist within the sale of three varieties of semiconductor parts, or chips, utilized in gadgets that ship tv and broadband Web providers” and that “Broadcom illegally maintained its energy within the three monopolized markets by coming into long-term agreements with each OEMs and repair suppliers that prevented these prospects from buying chips from Broadcom’s rivals.” The contracts required prospects to buy and use “Broadcom’s chips on an unique or near-exclusive foundation,” the FTC mentioned. “Broadcom entered these exclusivity and loyalty agreements with no less than ten OEMs, together with these with essentially the most in depth engineering and design capabilities and the strongest ties to service suppliers.”

Broadcom imposed comparable contract necessities on TV and broadband suppliers, the FTC mentioned. “By coming into exclusivity and loyalty agreements with key prospects at two ranges of the availability chain [device makers and service providers], Broadcom created insurmountable boundaries for firms making an attempt to compete with Broadcom,” the FTC mentioned. The service suppliers that use gadgets with Broadcom chips embody AT&T, Constitution, Comcast, Dish, and Verizon, the FTC mentioned.

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