Broadcom hopes settlement will avoid EU antitrust fine

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Broadcom hopes to strike a deal that would end an EU antitrust investigation and avoid the prospect of a significant fine.

Since June last year, European competition authorities have examined whether the chipmakers deals with TV set-top-box and modem manufacturers have been an abuse of a dominant position in the market.

Specially, investigators are looking into whether six exclusivity or partial exclusivity deals with vendors that require them to purchase more than half of their chips from Broadcom have been implemented with the intention of squeezing out smaller rivals.

Broadcom antitrust 

Broadcom is currently the subject of an interim ruling, the first issued by the European Commission in nearly 20 years, and has now offered not to enter into any such exclusivity deals over the next five years.  

“TV set-top boxes and modems are part of our daily lives, for both work and for leisure, even more so in these days of confinement,” said Commission Executive Vice President Margrethe Vestager, who is in charge of competition policy.

“We are assessing whether the commitments proposed by Broadcom after our interim measures decision of last October will ensure that final consumers reap the benefits of choice and innovation on these markets. We want to hear stakeholders' views before taking any decision.”

If Broadcom is not successful, it could be subject to a fine of up to ten per cent of global turnover.

“In these uncertain times, we welcome the opportunity to avoid protracted litigation and to resolve the investigation without recognition of liability or the imposition of a fine,” Broadcom told Reuters.

Via Reuters

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.