The European Commission decided on Wednesday 16 October to order Broadcom, the world's leading supplier of chipsets used for TV set-top boxes and modems, to stop applying certain provisions contained in agreements with six of its main customers.
This is the first time in 18 years that such "interim measures" have been taken.
"These measures will prevent serious and irreparable harm to competition likely to be caused by Broadcom's conduct, which, at first sight, infringes EU competition rules", the Commission says.
According to Margrethe Vestager, Commissioner in charge of competition policy, "we have strong indications that Broadcom is engaging in anticompetitive practices". "We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation", she added.
In June, the Commission opened an investigation into anticompetitive practices (see EUROPE 12283/20).
"Broadcom is, at first sight, infringing competition rules by abusing its prima facie dominant position", according to the Commission's analysis.
The company has entered into agreements with six manufacturers of TV set-top boxes and modems containing anticompetitive provisions (exclusive purchasing obligations, etc.). If Broadcom's ongoing conduct were allowed to continue, it would likely affect a number of tenders that would be launched in the future, also in relation to the upcoming introduction of the WiFi 6 standard for modems and TV set-top boxes.
The Commission orders Broadcom to unilaterally cease to apply the anticompetitive provisions, to refrain from agreeing the same provisions and to refrain from implementing punishing or retaliatory practices.
Broadcom must comply with these measures within 30 days. The provisional measures shall apply for the earlier of three years or the date of adoption of a final decision. The investigation on the merits of all parts of the case is still ongoing. (Original version in French by Lionel Changeur)