FTC Orders Broadcom To Cease Monopolistic Conduct

The Federal Trade Commission filed a proposed consent order to settle antitrust charges against Broadcom Inc AVGO. It requires Broadcom to stop forcing customers to buy components mostly or only from Broadcom.
Earlier, the FTC blamed Broadcom for illicitly controlling the market for semiconductor components that deliver television and broadband internet.
Broadcom had allegedly maintained monopoly power through long-term agreements with at least ten original equipment manufacturers of set-top boxes and broadband devices.
The contracts reportedly prevented those OEMs from buying chips from the company’s rivals.
Broadcom also forged similar deals with major service providers.
The FTC voted unanimously to file charges against the company. It also voted to accept a proposed consent order for public comment.
The proposed agreement will prohibit Broadcom from exclusivity contracts with specific customers. It will also require the company not to condition access to chips on exclusivity deals.
Price action: AVGO shares traded lower by 0.48% at $467.42 on the last check Friday.