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Broadcom has a monopoly in TV semiconductor industry, FTC concludes 

The US Federal Trade Commission (FTC) has approved an order settling charges against Broadcom.

A complaint brought against the semiconductor firm alleged that Broadcom “illegally monopolised markets for semiconductor components used to deliver television and broadband internet services through exclusive dealing and related conduct.”

The FTC found that Broadcom secured restrictive contracts which stopped rival companies from competing. In particular, Broadcom is a monopolist in the sale of three types of semiconductor components, or chips, used in devices that deliver television and broadband internet services. These chips, the FTC said, are the core circuitry that run traditional television broadcast set top boxes, as well as DSL and fiber broadband devices.

Broadcom has now been prohibited from “entering into certain types of exclusivity or loyalty agreements with its customers for the supply of key chips for traditional broadcast set top boxes and DSL and fiber broadband internet devices.”

The company is also obliged to stop conditioning access to or requiring favourable supply terms for chips.

Lastly, Broadcom has been prohibited from retaliating against customers for doing business with Broadcom’s competitors.

Tags: Broadcom, FTC

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