EU tells Broadcom to stop certain business deals in unprecedented move

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Broadcom has been ordered to stop applying certain exclusivity deals it has with six of its customers.

Patrick Fallon | Bloomberg | Getty Imageshas been ordered to stop applying certain exclusivity deals it has with six of its customers, amid an antitrust investigation carried out by the European Union.

The Brussels-based institution believes that part of Broadcom's business could be creating "serious and irreparable harm to competition." The European Commission opened an in-depth investigation into the U.S. company in June. As part of this investigation, the Commission announced Wednesday that it's imposing interim measures to prevent any likely "harm" to competition, for as long as the probe continues.

"We have strong indications that Broadcom, the world's leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anti-competitive practices," Margrethe Vestager, the EU's competition chief, said in a statement. "We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation. We therefore ordered Broadcom to immediately stop its conduct," Vestager added.

 

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