A PYMNTS Company

FTC Charges Broadcom With Illegal Monopolization

By  |  July 2, 2021

The Federal Trade Commission said Friday it has proposed to settle charges against Broadcom for allegedly monopolizing markets for semiconductor components for television and broadband internet services through exclusive dealing and related conduct.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to the the Wall Street Journal, the FTC said that under a consent order, Broadcom must stop requiring its customers to source components from Broadcom on an exclusive or near exclusive basis.

    The FTC alleged in its complaint that Broadcom is a monopolist in the sale of three types of chips used in devices that deliver television and broadband internet services.

    The complaint alleges that Broadcom illegally maintained its power in the three markets by entering long-term agreements with both original equipment manufacturers and service providers that prevented these customers from purchasing chips from Broadcom’s competitors.

    Under the proposed consent order, Broadcom will be prohibited from entering into certain types of exclusivity or loyalty agreements with its customers for key chips for traditional broadcast set-top boxes and DSL and fiber broadband internet devices, the FTC said.

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