Broadcom bows to EU pressure

Author: EIS Release Date: May 14, 2020


Broadcom has made an offer to the EU to get it to drop its anti-trust investigation, reports Reuters.

In return for ending the investigation into its sales practices,  Broadcom has said it is willing to drop  ‘exclusivity deals’ whereby TV and modem customers who buy more than 50% of their requirement from Broadcom get rebates and special treatment.

“In these uncertain times, we welcome the opportunity to avoid protracted litigation and to resolve the investigation without recognition of liability or the imposition of a fine,” said Broadcom.

The EU issued an interim order last June telling Broadcom to drop the practice. The fine for the breach could be 10% of Broadcom’s turnover.

The EU says it will ask for feedback from the industry and, if approved, will make the order banning exclusivity deals for five years.

Intel, MediaTek,  ON Semiconductor and Humax took part in an EU meeting last August where Broadcom defended its practices.