The US chip group Broadcom is advised, because of possible illegal competitive practices to the attention of the EU Commission. A formal investigation had been launched, said the Brussels authority.

Broadcom – a former Asian company, which relocated in the United States – is the world’s largest provider of chipsets for digital decoders, Modems, and Wi-Fi devices.

“We expect Broadcom […] has introduced contractual restrictions for the exclusion of its competitors from the market”, said the responsible EU Commissioner, Margrethe Vestager. The Commission, moreover, to impose interim measures against the company, “the risk of serious, irreparable damage to competition, prevent”.

Specifically, the competition authorities accusing the chip giant here, to tie seven of its main customers, the connect TV digital decoders and modems, with illegal funds, so that these acquire virtually exclusively on Chips from Broadcom.

The initiation of the proceeding, not before the attack the result is still, more said the EU Commission. In the extreme case, however, penalties in the billions can be due.

dpa

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