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Broadcom suggests abandoning exclusive deals to end EU antitrust investigation

If the European Commission accepts the proposal, the agreement will be valid for five years

Broadcom, an American manufacturer of microchips, proposed a deal to European regulators: the company is ready to abandon exclusive deals with manufacturers of TVs and modems in order to stop antitrust investigations in the EU and evade a large fine.

Broadcom
Broadcom

Broadcom suggests abandoning exclusive deals to end EU antitrust investigation

The company that supplies microchips for smartphones, computers and other equipment, and is the main supplier of Apple, has fallen into the sights of European antitrust monitors, having concluded agreements with six companies providing for the exclusive or almost exclusive purchase of microchips.

Last June, an investigation was launched. At the same time, the European Commission issued a decision suspending the validity of the mentioned transactions until the end of the investigation, the purpose of which was to verify whether Broadcom’s actions were aimed at ousting competitors from the market.

In its proposal, Broadcom promises not to attract manufacturers of TVs and modems with incentives in exchange for a preemptive purchase of its products.

According to Broadcom, the proposal was sent to the European Commission for consideration. The company expects the investigation to be closed by the end of the year.

The manufacturer explained his actions by the desire to do without a protracted trial, which could result in a fine. For such violations, the European Commission may impose a fine of up to 10% of the company’s global turnover.

If the European Commission accepts the proposal, the agreement will be valid for five years.

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