Broadcom under Antitrust scrutiny from FTC again
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© Reuters. FILE PHOTO – A sign pointing to Broadcom Ltd’s campus office is seen in Irvine (California), U.S.A, on November 6, 2017. REUTERS/Mike Blake(Reuters) – The U.S. Federal Trade Commission has placed Broadcom (NASDAQ) Inc under investigation after it was accused of forcing customers into exclusive contracts, The Information reported.
The FTC has begun to gather information on whether Broadcom, which is a significant supplier of Bluetooth chips and WiFi connectivity for companies such as Apple Inc (NASDAQ)), unlawfully imposed exclusivity agreements upon its customers.
Broadcom blames the supply-chain crisis for justifying its demand from customers to get it, according to the report. It cited people who are familiar with the situation as well as a document that was seen by The Information.
Broadcom didn’t immediately reply to Reuters’ request for comment. The FTC declined to comment.
FTC announced that in July, it had submitted a proposal order for the settlement of antitrust claims against Broadcom. Broadcom had to agree not to demand that customers purchase components mainly from Broadcom.
Broadcom and the European Commission reached an identical agreement in October 2020.
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