BRUSSELS (Reuters) – U.S. chipmaker Broadcom (AVGO.(O) has been ordered to stop the exclusivity deals with six TV’s and the modem makers, for a maximum of three years, while the EU’s anti-trust enforcers to investigate whether these events are aimed at the commencement of the class.
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 move by the European Commissioner for Competition, Margrethe Vestager suggests she may be more willing to take a temporary, but quick action is brought against the tech giants, and shall be deemed to be an abuse of their position of power instead of having to wait for investigations to be completed.
Google’s (GOOGL.D) the critics have for years called Vestager to the purpose of the English Alphabet, Inc. its subsidiaries for such interim measures, while the 10-year-long battle with EU antitrust regulators.
“It doesn’t necessarily mean that we will have all cases prepared in which the provisional measures are to be used, but it does mean that the tools are on the table,” Vestager told a news conference.
“And if we get the cases that meet the two things that need to be done at the same time, yes, yes, yes, we will make use of the temporary measures more often,” she said.
This is the first one to be 18 years of age.
The European Commission had in June warned against Broadcom by any measure. The company, whose chips power smartphones, computers, and networking equipment, has been a major supplier of Apple’s (AAPL.D).
The Commission said Broadcom has 30 days in which to comply with the order, which is valid for a maximum of three years, with an estimate of how long the investigation by the EU is likely to take.
- Broadcom said that the EU’s anti-trust and order will not have an impact on the business world, a challenge to the
The EU regulator said on a number of the provisions in the agreements with six of its key customers are most likely to lead to serious and irreparable damage to competition, and the impact of future calls for proposals in the context of the implementation of Wi-fi, 6 in the standard for modems and TELEVISION set-top boxes.
The competition enforcer’s center on Broadcom’s deals with six of the TV or set-top box and modem authors, that will result in the company purchasing a variety of chips for use solely or almost solely by the company.
Controversial practices include bundling discounts, or other benefits to an exclusive or minimum purchase requirements. Reuters reported on Oct. 4 the Commission seems to be Broadcom, to suspend this practice.
Reporting by Foo Yun Chee; Additional reporting by Marine Strauss; Editing by Louise Heavens and Edmund Blair