US chipmaker Broadcom announced on Wednesday, October 16, that an EU antitrust order to halt certain business deals with six TV and modem makers will not have a material impact on its business and it will challenge the EU move in court reported Reuters.
The European Commission issued the order, the first issued against a company in 18 years, claiming certain provisions in the deals could cause serious and irreparable harm to competition.
“The principal effect of the Commission’s decision will be to disrupt the efficiencies that Broadcom and European OEMs have achieved through strategic alignment,” the company stated, referring to TV and modem makers.
The European Commission opened an in-depth investigation into the US company in June. As part of this investigation, the Commission announced Wednesday that it’s imposing interim measures to prevent any likely “harm” to competition, for three years. Broadcom must comply with these measures within 30 days from Wednesday.
“We have strong indications that Broadcom, the world’s leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anti-competitive practices,” Margrethe Vestager, the EU’s competition chief, said in a statement.
“We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation. We, therefore, ordered Broadcom to immediately stop its conduct,” Vestager added.
Full Content: Reuters
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