Broadcom scraps exclusivity deals with TV and modem makers

Broadcom will scrap its exclusivity deals with TV and modem makers for seven years in a deal with EU antitrust regulators aimed at ending investigation without a finding of wrongdoing, Reuters reported.
Broadcom chipset
The European Commission launched an investigation into Broadcom in June last year and even threatened to issue an interim order, its first in almost two decades, to stop such practices while the probe was ongoing.

The US-based Broadcom, which makes chips to power smartphones, computers and networking equipment and is a major supplier to Apple, subsequently offered to end its exclusivity deals.

If Broadcom were to breach the commitments, the Commission could impose a fine of up to 10 percent of Broadcom’s total annual turnover, without having to find an infringement of EU antitrust rules.

“Broadcom will suspend all agreements containing exclusivity or quasi-exclusivity arrangements and/or leveraging provisions concerning Systems-on-a-Chip for TV set-top boxes and Internet modems, and has committed not to enter into new agreements comprising such terms,” the EU competition regulator said in a statement.

In Europe, Broadcom will not offer price or non-price incentives to TV and modem makers to buy a minimum number of its products nor tie such purchases to sales of other products.

On a worldwide level excluding China, Broadcom also pledged not to offer price or non-price incentives to TV and modem makers to buy more than 50 percent of its products nor tie such purchases to sales of other products for more than 50 percent of their products.