The Federal Trade Commission has filed a lawsuit against Broadcom alleging that the chip manufacturer was responsible for disrupting the semiconductor market. Friday.
According to Complaints of the agency, Broadcom has entered into long-term and long-term contracts with manufacturers and suppliers to prevent the purchase of chips from Broadcom’s competitors. An FTC study, launched several years ago, found that Broadcom has been producing “exclusive or exclusive” products since 2016 with at least 10 manufacturers of high-end TV boxes and Broadband equipment. The company has also threatened customers who use counterfeit services and refunds, non-existent customers face higher prices for delays in delivery and less customer support, the FTC says.
“By leveraging loyal and loyal deals with key customers in the two retail sectors, Broadcom has created barriers to companies trying to compete with Broadcom,” the agency said in a statement. Press release Friday.
The FTC said under the terms of the law, Broadcom should stop participating in such deals and reconsider its chances of getting their chips based on service or loyalty. Broadcom will also be banned from retaliating against customers who do business with their competitors.
“America has a problem,” said Holly Vedova, director of the FTC’s Bureau of Competition, in a statement. “What has happened today is a way to address this problem by putting back one-on-one powerful weapons in the major broadband market. There is a lot of work to be done and we need the tools and resources to do so. But I have every confidence in the commitment of our FTC in this regard. ”
G / O Media can be sent
The policy should still provide public comment and final review. For its part, Broadcom has pushed back against the FTC as it also shows its willingness to support the deal. The company has resolved a similar dispute over European integration in the end Obviously how they agreed to stop using the chips used in high-end TV and modem boxes for the next seven years.
“We are pleased to resolve the Broadband issue with the FTC on an issue that is very similar to how we have been in the past with [European Commission] plus that, “Broadcom said in a statement CNBC. “While we do not condone our actions in violation of this policy and do not agree with the FTC’s position on our business, we hope to get rid of this issue and continue to support our customers through the rapid digital transformation.”
Source link
