The US Federal Trade Commission is investigating whether Broadcom engaged in anticompetitive tactics in negotiations with customers, people familiar with the matter told the Wall Street Journal.
Broadcom confirmed a FTC investigation was underway, but said it was "immaterial to our business, does not relate to wireless and has no impact on our proposal to acquire Qualcomm".
The investigation, already underway for several months, gathered steam lately with subpoenas that seek an extensive amount of information, the report said. Broadcom has changed some of its contracts so that they now call for customers to buy a percentage of its output of a certain item rather than an absolute number, some of the people said. That could raise concerns from antitrust enforcers worried that the approach might limit other customers’ access to the product.
