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FTC approves Broadcom agreement to end modem chip monopolization

FTC approves Broadcom agreement to end modem chip monopolization

Business news |
By Peter Clarke



The order was approved after a period set aside for public comment.

According to the complaint Broadcom has acted as a monopolist in three types of chips; chips for broadcast set-top boxes, for DSL and for fiber-based broadband devices. Broadcom is also one of the few significant suppliers of five related types of chips.

Under the order Broadcom must desist from exclusivity and loyalty deals and bundled selling and must not retaliate against customers for doing business with Broadcom’s competitors.

The order was originally announced by FTC on July 2, 2021.

The order comes a year after the European Commission accepted Broadcom’s offer to drop exclusivity clauses and bundled selling of chips in the same categories and ended legal proceedings.

The FTC vote to approve the final order was 3-0-1 with chair Lina Khan not participating.

Related links and articles:

www.broadcom.com

News articles:

Europe accepts Broadcom’s promise to drop exclusive, bundled chip sales

Broadcom offers to drop exclusive, bundled deals on modem ICs

Europe tells Broadcom to stop modem market abuse

Europe fines Qualcomm €242 million over Icera ploy

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