BROADCOM is facing an EU antitrust review of its alleged use of market dominance to pressure customers to purchase their semiconductor products. EU officials are looking for evidence that Broadcom, based in California, uses its market position to force customers to stick to their chips, which unfairly puts competitors at a disadvantage.
According to information disclosed by people familiar with the matter and the questionnaire issued by the European Commission, the focus of the preliminary EU survey is on the sales of set-top box chips used by Broadcom for the limited network and satellite industries to provide TV and Internet services to users. In addition, sources said the US Federal Trade Commission (FTC) is also reviewing Broadcom’s actions.
In the questionnaire, the EU asked other companies whether they had been threatened by Broadcom’s patent litigation, whether they wanted to raise prices, canceled discounts on customers who did not use Broadcom chips, and whether technology compatibility was used as a lever to force the industry to continue using its products. . Arris International is one of Broadcom’s customers who received the survey, the world‘s leading provider of entertainment, communications and networking technologies.
The EU membership, FTC and Broadcom did not comment on this news.