A PYMNTS Company

EU: Formal antitrust probe of Broadcom opened

By  |  June 26, 2019

The European Commission has opened a formal investigation into US chipmaker Broadcom, which it suspects of restricting competition via a number of exclusivity practices in markets where it holds a leading position such as for systems-on-a-chip, front-end chips and wifi chipsets.

The FTC opened its investigation into Broadcom back in January 2018.

Commenting in a press release announcing the antitrust action against the chipmaker, the EU’s antitrust chief Margrethe Vestager said, “TV set-top boxes and modems are part of our daily lives, for both work and for leisure. We suspect that Broadcom, a major supplier of components for these devices, has put in place contractual restrictions to exclude its competitors from the market. This would prevent Broadcom’s customers and, ultimately, final consumers from reaping the benefits of choice and innovation. We also intend to order Broadcom to halt its behaviour while our investigation proceeds, to avoid any risk of serious and irreparable harm to competition.”

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.