On June 26, 2019, the EU Commission opened a formal investigation into U.S. chipmaker
Broadcom's alleged abuse of dominance. In a rather unexpected
move, the EU Commission informed the company, on the same day, of
its intention to impose interim measures, a long-forgotten
tool.
Broadcom, which is a major supplier of components for TV and
modem chipsets, is being suspected of having put in place
contractual restrictions to exclude its competitors from the
market.
Hearings were held in late August.
On October 16, 2019, the EU Commission, likely
unconvinced by Broadcom's arguments, ordered Broadcom to unilaterally cease applying
exclusivity clauses contained in its agreements with six
manufacturers of TV set-top boxes and modems, withhold commercial
advantages granted to some of its customers, and refrain from
agreeing to the same provisions or like provisions for the time
being.
