Broadcom has agreed to end some of its special terms with modem and set-top box chip customers, in order to avoid competition fines from the European Commission. The Commission said it will seek feedback from the market on the commitments proposed by Broadcom before it decides whether the remedies are enough to alleviate its competition concerns.
The Commission launched an investigation into Broadcom last June amid suspicions the company was abusing its dominant position in the market for STB and modem chips. The EC said in October that it had found enough evidence of competition infringement to warrant interim measures and told Broadcom to change its sales practices. The EU was concerned in particular about certain exclusivity arrangements imposed by Broadcom that could push competitors out of the market.
Broadcom has agreed to no longer require or induce manufacturers to take at least half of their SoCs for STBs, DSL modems and fibre modems from the company. This also covers sales conditions for related products such as SoCs for cable modems, front-end chips for STBs and modems and Wi-Fi Chips for STBs and modems. The restrictions would apply at the global (excluding China) and EEA levels for five years and require Broadcom to submit annual reports.
Interested market parties can submit comments on the proposal within six weeks.
