BRUSSELS (Reuters) – eu antitrust regulators will investigate whether the U.S. chipmaker, Broadcom enables the use of exclusivity restrictions, and to block out competitors in TV, and modem and chipset markets, a move that could result in substantial fines for the company, and to put an end to such practices.
FILE PHOTO: A sign at the head of the office of chip maker Broadcom Ltd. has been listed in Irvine, California, USA, November 6, 2017. REUTERS/Mike Blake/File Photo
The European Commission has said that it plans to impose interim measures during the probe, to prevent “grave and irreparable harm” to the market. It has sent a statement of objections, or sheets, of the company, which is the reason why these measures are necessary.
Broadcom said that it believes that it is in compliance with the European rules of competition, and that the objections were “without merit.”
The San Jose, Calif.-the company’s communications chips, power, Wi-Fi, Bluetooth and GPS as connectivity in smartphones and tablets.
Broadcom’s anti-competitive practices, and to prevent its customers, and ultimately consumers, to enjoy the benefits of choice and innovation, the European Commissioner for Competition, Margrethe Vestager, said in a statement.
Such practices include the exclusive purchase requirements, bundling, rebates, or other benefits to an exclusive or minimum purchase requirements, product bundling, abusive, indecent, IP-related strategies, and to create an awareness of the difficulty for the Broadcom product with competitive products, he said.
The EU competition enforcers said the interim measures were to be justified by, Broadcom is likely to be dominating the TELEVISION and the modem, and chipset markets, and the transactions between the company and the company’s top seven customers, which has resulted in the recent purchase of chips from Broadcom.
On file with the U.S. regulatory authorities (nras), Broadcom said it was not expected to have a material impact on the set-top box, or high-speed modem, to the business of the Commission is to move on.
It is said that the Commission’s planned interim measures that Broadcom to sell.
The Commission has the power to levy a fine of up to a maximum of 10% of the global revenue for breaches of the EU rules and regulations. Alphabet is a unit of Google, and I have been hit with heavy fines in recent years for their anti-competitive practices.
Reporting by Foo Yun Chee; editing by Philip Blenkinsop and Deepa Babington