Business

FTC, Broadcom agree to settle on illegal monopoly charges

Federal Trade Commission and Broadcom Inc. Agreed to resolve allegations that the company took advantage of some chip market advantages to eliminate potential rivals.

Under the proposed consent order, the FTC on Friday said Broadcom must stop requiring customers to procure three types of chips exclusively or almost exclusively from the company.Chips are used in certain TVs and broadband internet service equipment

According to FTC, Broadcom maintains its strength in these markets by signing long-term contracts with both partner brand suppliers and service providers to prevent these customers from purchasing chips from Broadcom’s competitors. Did. The FTC survey dates back several years..

Broadcom is a leading supplier of communication chips for consumer devices such as set-top boxes and cable modems, where hardware is prevalent. Cable service providers deal with manufacturers to manufacture set-top boxes and modems for their customers. These manufacturers propose designs and coordinate the chips used with service providers.

“We do not agree that our actions violate the law, nor do we agree with the characteristics of FTC’s business, but we postpone this issue and support our customers through an environment where digital transformation is accelerating. We look forward to continuing to focus on our efforts, “said Broadcom. statement. “I’m just as happy that the FTC’s investigation into other projects was completed without any action,” he added.

FTC, Broadcom agree to settle on illegal monopoly charges

Source link FTC, Broadcom agree to settle on illegal monopoly charges

Back to top button