US antitrust officials investigating Broadcom are significantly broadening their scrutiny to focus on whether the chipmaker abused its dominance to sell some of its most important semiconductor products, according to documents and a person familiar with the probe.
The Federal Trade Commission (FTC) is seeking evidence that Broadcom’s conduct harmed competition in Wi-Fi and switch-chip markets, according to a civil investigative demand issued last week and obtained by Bloomberg News. The agency is looking into whether the company forced customers to deal with it exclusively.
The document, which is akin to a subpoena, shows that enforcers are now targeting the vast majority of Broadcom’s chip business. The company had disclosed an investigation last year that it said was “immaterial.”
Broadcom is one of the biggest suppliers of Wi-Fi technology used in smartphones and home routers and gateways, giving its chips a crucial role in the way the consumers get online. The company’s switch chips, the heart of devices that control traffic in computer networks, are used in machines by companies including Cisco Systems and Huawei.
Broadcom and the FTC declined to comment. The company’s stock fell as much as 7.3%, extending an earlier decline that followed the US government’s action against Huawei, which hurt shares of chipmakers that supply the Chinese company.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
French Regulator Meat-Cutting Sector Case Following Antitrust Review
May 15, 2024 by
CPI
Arizona Attorney General Files Suit Against Amazon Over Unfair Business Practices
May 15, 2024 by
CPI
Varsity Spirit and Private Equity Owners Settle Class Action Antitrust Suit
May 15, 2024 by
CPI
US Senators Present AI Strategy, Call for Funding Surge
May 15, 2024 by
CPI
Hausfeld Strengthens Competition Bench with Key Hires in London and Germany
May 15, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI