Broadcom ordered the elimination of exclusion markets until the end of EU proofing t


FILE FILE: A sign of the manufacturer of the chip maker Broadcom Ltd is shown in Irvine, California, U., November 6, 2017. REUTERS / Mike Blake / File Photo

BRUSSELS (Reuters) – Chipmaker Broadcom U.AVGO.Oit was ordered to stop exclusivity dealings with TV and modem manufacturers and to investigate the EU's implementation of resistance to whether these agreements are aimed at preventing competitors.

In June the European Commission warned Broadcom of a possible interim measure. The company is a major supplier to Apple, which is powered by smart phone phones, computers and networking equipment.AAPL.O).

“This will prevent irreversible and irreversible damage to the competition likely to result from Broadcom's conduct, which violates prima facie EU competition rules,” the Commission said.

The Commission stated that Broadcom has 30 days to comply with the order, which is valid for up to three years.

The competition enforcement point on Broadcom deals with six box and modem TV manufacturers that companies exclusively or exclusively purchase different chips from the company.

Controversial practices include linking rebates or other benefits to exclusion or purchase requirements. Reuters reported on 4 October that the Commission would direct Broadcom to suspend such practices.

Interim measures are rarely made and issued only if the Commission has reason to believe that companies will put pressure on or marginalize competitors before it can return its investigations that can take several years.

Reporting by Foo Yun Chee, edited by Louise Heavens

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