The EU Commission imposes interim measures to a chipmaker suspected of having put in place contractual restrictions to exclude its competitors from the market (Broadcom)

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

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Authors

  • Orrick, Herrington & Sutcliffe (Paris)
  • Orrick, Herrington & Sutcliffe (Paris)

Quotation

Maxence Jonvel, Marie-Laure Combet, The EU Commission imposes interim measures to a chipmaker suspected of having put in place contractual restrictions to exclude its competitors from the market (Broadcom), 16 October 2019, e-Competitions October 2019, Art. N° 95172

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