FTC Charges Broadcom With Illegal Monopolization, Proposes Order

The Federal Trade Commission charged Broadcom with illegally monopolizing markets for semiconductor components, and ordered the company to cease anticompetitive conduct.

• Commission also issued a proposed consent order that would settle charges, in which Broadcom must stop customer requirements to source components from itself on an “exclusive or near exclusive basis”
  • Broadcom will be prohibited from exclusivity or loyalty pacts with customers to supply chips for traditional broadcast set top boxes and DSL and fiber broadband internet devices
  • Company must stop conditioning access or requiring favorable supply terms on a customer’s commitments
  • Prohibits the supplier from retaliation for doing business ...