Broadcom under Antitrust scrutiny from FTC again - The Information

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[April 23, 2022]  (Reuters) - Semiconductor maker Broadcom Inc is under scrutiny from the U.S. Federal Trade Commission following complaints it is forcing exclusive agreements with customers, The Information reported on Friday. 

A sign to the campus offices of chip maker Broadcom Ltd is shown in Irvine, California, U.S., November 6, 2017. REUTERS/Mike Blake

The FTC is in the early stages of gathering information about whether Broadcom, which has become a major supplier of WiFi and Bluetooth chips to companies like Apple Inc, illegally forced exclusivity agreements on its customers, the report added.

Broadcom is blaming the supply-chain crisis to justify its demands from customers, the report said, citing people with knowledge of the situation and a document seen by The Information.

The FTC has declined to comment, while Broadcom did not immediately respond to a Reuters request for comment.

In July last year, FTC said it had filed a proposed order to settle antitrust charges against the company. The consent order required Broadcom to stop demanding that its customers buy components mostly or only from Broadcom.

Broadcom reached a similar agreement with the European Commission in October 2020.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Krishna Chandra ELuri)

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