EU bars Broadcom exclusive TV chip deals
October 16, 2019
The EU has ordered Broadcom to halt exclusivity deals with six TV and modem makers for up to three years while EU antitrust authorities investigate whether these agreements have an anti-competitive purpose.
Broadcom said it would comply with the order but would launch an appeal in the European courts, disputing the commission’s assessment of provisions in its contracts. “We do not believe that these provisions have a meaningful effect on whether the customers choose to purchase Broadcom products,” the company said, adding that the order would not have a material impact on its set-top box and modem businesses.
The EU’s concerns centre on Broadcom’s deals with six TV set-top box and modem makers which result in the companies buying various chips exclusively or almost exclusively from the company.
The Commission said Broadcom has 30 days to comply with the order, which is valid for up to three years, an estimate of how long the EU investigation will take.
The EU regulator said certain provisions in the deals with six of its major customers are likely to cause serious and irreparable harm to the competition as well as affect future tenders related to the introduction of WiFi 6 standard for modems and TV set-top boxes.