Broadcom has agreed to suspend all existing exclusive agreement around Systems-on-a-Chip (“SoCs”) for TV set-top boxes and Internet modems.
The chipmaker told the European Commission in April it will no longer enter into any new agreements with similar terms, and this has now been accepted.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Today’s decision legally binds Broadcom to respect the commitments. They will ensure that existing chipset makers competing with Broadcom and potential new entrants will be able to compete on the merits. Producers of set-top-boxes and Internet modems, telecom and cable operators and ultimately consumers will benefit from competition between chipmakers in terms of lower prices and more innovative products.”
The conclusion of the anti-trust investigation follows an alleged abuse of dominance by Broadcom in SoCs for TV set top boxes, xDSL and fibre modems.
The decision ordered Broadcom to stop applying these provisions contained in agreements with six of its main customers and ordered the implementation of interim measures applicable for a period of three years.
