Broadcom faces EU order to suspend some business practices - source (updated)

HUMAX CO

04/10/2019 15:53

(Adds European Commission declines comment, Broadcom no
immediate comment, details)
    By Foo Yun Chee
    BRUSSELS, Oct 4 (Reuters) - U.S. chipmaker Broadcom  AVGO.O 
will be told by EU antitrust regulators this month to suspend
certain business practices including exclusivity clauses with TV
and modem makers, a person familiar with the matter said on
Friday.
    Such a decision would be the European Commission's first
interim order in almost two decades. The measure prohibits
certain activities until the regulator completes its
investigations, which typically take several years, and could
pave the way for similar action against other tech companies.
    The EU executive will brief national competition agencies on
Oct. 7 on its proposed interim measure before taking a formal
decision and informing the company, the person said.
    The Commission declined to comment.
    Broadcom did not immediately respond to an emailed request
for comment. The company has previously said it did not expect a
material impact on its set-top box or broadband modem business
from such a move by the Commission, and that an interim measure
would not preclude it from continuing to sell any products. 
    Interim measures are rare because of the high bar proving a
company's practice would cause lasting harm to market
competition. The Commission's last order, 18 years ago, was
thrown out by an EU court after the company then involved
challenged it.
    EU competition authorities opened the Broadcom investigation
in June and detailed to the company why the interim measure
might be necessary to avoid irreparable harm to the market.
 urn:newsml:reuters.com:*:nL8N23X2BD
    Regulators are looking into Broadcom's practices such as
exclusive purchasing obligations and tying rebates or other
benefits to exclusive or minimum-purchase requirements.
    Broadcom defended itself at a closed door hearing in August.
Participants included Intel  INTC.O , MediaTek  2454.TW ,
Quantenna which is a unit of ON Semiconductor  ON.O  and Humax
 115160.KQ .

 (Reporting by Foo Yun Chee; editing by Philip Blenkinsop and
Pravin Char)
 ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))