Broadcom to end exclusivity deals for seven years in EU antitrust deal
From Foo Yun Chee
BRUSSELS (Reuters) - US chipmaker Broadcom will abolish its exclusivity agreements with television and modem manufacturers under a contract with EU antitrust authorities to end a year-long investigation without finding any wrongdoing, the European Commission said on Wednesday.
The European Commission opened an investigation into the company last June and even threatened to issue an injunction for the first time in nearly two decades to end such practices while the investigation is ongoing.
Broadcom, which makes chips for powering smartphones, computers and network devices and is a major supplier to Apple, subsequently offered to end its exclusivity agreements.
"Broadcom will suspend all existing agreements that contain exclusivity or quasi-exclusivity agreements and / or use provisions relating to systems-on-a-chip (SoCs) for TV set-top boxes and internet modems, and is committed to not to conclude any new agreements that include such terms, "said the EU competition authority in a statement.
In Europe, Broadcom will not offer price or non-price incentives for TV and modem manufacturers to purchase a minimum number of their products or to tie such purchases to the sale of other products.
On a global level excluding China, it also pledged not to incentivize TV and modem manufacturers, whether or not to price, to buy more than 50% of their products, and not to tie these purchases to sales of other products for more than 50% of their products .
The licenses are valid for seven years.
(Reporting by Foo Yun Chee, Editing by Louise Heavens)
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