- Broadcom Inc (NASDAQ: AVGO) said it would be willing to cut its exclusivity deals with TV and modem companies in order to end an EU antitrust investigation
US-based chipmaker Broadcom Inc (NASDAQ: AVGO) said it would be willing to cut its exclusivity deals with TV and modem companies in order to end an EU antitrust investigation, according to Reuters. Broadcom Inc (NASDAQ: AVGO) — which is known for making chips used in smartphones, computers, and servers — started being investigated by EU regulators upon making deals with six companies to buy chips exclusively or nearly exclusively from them.
This launched an investigation in June 2019 along with an order to stop making these types of deals until the end of the probe determines whether these practices were aimed at limiting competition.
Broadcom Inc (NASDAQ: AVGO) is now offering not to offer incentives to TV and modem manufacturers to encourage them to buy over 50% of their chips and modems from the company for their worldwide or Europe-based production. Some of the ways that companies reduce the competition is by offering significant rebates and other benefits for exclusive or minimum purchases.
“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 Inc (NASDAQ: AVGO) in a statement.
The European Commission is going to make a decision whether to accept this offer after receiving feedback about it. If the offer is approved, then it would be valid for five years.
