On Wednesday 7 October, the European Commission decided to accept commitments from US semiconductor manufacturer Broadcom to guarantee competition in the modem and television set-top box chipset markets, thereby closing the procedure launched in June 2019.
The Commission has decided to make the commitments offered by Broadcom legally binding under EU competition rules.
Broadcom will suspend all existing agreements containing exclusivity or quasi-exclusivity clauses and/or leveraging provisions relating to television set-top box and internet modem systems.
In June 2019, the Commission opened proceedings against Broadcom, which it suspected of abusing its dominant position. It requested the US manufacturer to cease specific contractual practices and ordered it to implement interim measures for three years (see EUROPE 12350/18 and 12475/25).
Margrethe Vestager, the Executive Vice-President responsible for competition policy, explained that Broadcom has committed: - not to enter into agreements that would oblige customers to buy any specific amount of their total needs for these chipsets; - not to enter into agreements that would incentivise customers to purchase these chipsets through rebates or other advantages; - not to link the supply of these chipsets to the purchase of any minimum quantity of other chipsets.
The European market is not the only one affected. The company has also made a global commitment: - not to enter into agreements that would oblige customers to purchase more than half of their total needs for these chipsets; - not to enter into agreements that would incentivise customers to purchase more than half of their total needs for these chipsets through rebates or other advantages; - not to link the supply of these chipsets to the customers purchasing more than half of their total need for other chipsets. (Original version in French by Lionel Changeur)