Broadcom settles US antitrust case on chip market

US regulators on Friday announced an antitrust settlement with Silicon Valley chip maker Broadcom, accused of abusing its clout in the market for set-top boxes for internet or streaming television services.

According to the Federal Trade Commission, Broadcom pressured other service providers into agreements that precluded them from buying chips from its competitors. Holly Vedova, director of FTC Bureau of the competition said, “America has a monopoly problem.”

The consent order approved by the FTC requires Broadcom to stop demanding its customers’ source components exclusively from the company, while no monetary penalty was announced.

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In a response to an AFP inquiry, Broadcom said, “While we disagree that our actions violated the law and disagree with the FTC’s characterizations of our business, we look forward to putting this matter behind us.”

The company said that the consent order worked out with US regulators in similar to a settlement announced last year with the European Commission regarding the same chips.

At that time, Executive vice-president Margrethe Vestager said producers of set-top-boxes and internet modems, telecom and cable operators, as well as consumers, would benefit from increased competition between chipmakers. 

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Broadcom said that they were pleased to move toward resolving the Broadband matter with the FTC on terms that are substantially similar to the previous settlement with the EC involving the same products.

“We are equally pleased that the FTC investigation into our other businesses has been closed without action.”

Commission chair Lina Khan did not take part in the vote to accept the settlement deal with Broadcom, according to the FTC.

The prominent advocate of breaking up Big Tech firms was sworn in as chair of the FTC agency in June, ramping up the potential for antitrust enforcement. Vedova said, “Today’s complaint reflects the commission’s commitment to enforcing the antitrust laws against monopolists, including in high-technology industries.”