European
Commission consults on Broadcom commitments
The
European Commission is consulting on commitments offered by Broadcom to address
abuse of dominance concerns in relation to its practices in TV set-top box and
modem chipset markets.
The
Commission launched its investigation in June 2019.
Broadcom
has offered commitments to address the Commission's competition concerns at
worldwide (excluding China) and EEA level.
These commitments include not requiring an original equipment
manufacturer (OEM) to obtain more than 50% of its systems on a chip (SoC) requirements
for TV set top boxes, xDSL modems and fibre modems from Broadcom.
The
commitments would apply for a period of five years.
Broadcom
has stated publicly that in these “uncertain times” it would prefer to avoid
protracted litigation.
The
case was the first where the Commission imposed interim measures at the start
of its probe and it expects to make greater use of these in digital economy
cases. The combination of interim measures
and commitments would be another first.
Interim measures may well be appropriate when faced with a defined
theory of harm; but they may be more concerning where they are used as a
bargaining chip in commitments discussions.
https://ec.europa.eu/commission/presscorner/detail/en/ip_20_755
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