Logo of Phnom Penh Post newspaper Phnom Penh Post - EU moving against chipmaker Broadcom in latest US tech salvo

EU moving against chipmaker Broadcom in latest US tech salvo

EU moving against chipmaker Broadcom in latest US tech salvo

The EU’s powerful anti-trust authority on Wednesday ordered US chipmaker Broadcom to immediately halt uncompetitive sales practices, using an unprecedented weapon against US Big Tech.

The European Commission took the extremely rare move of ordering interim changes from one of Silicon Valley’s pioneer companies while the EU investigation is still underway, citing “irreparable” threats to competition.

The move comes at a delicate time in trans-atlantic relations and risks raising the hackles of US President Donald Trump, who has accused the EU repeatedly of unfairly targeting US giants.

It also falls two days before $7.5 billion worth of European goods are slapped with US tariffs in retaliation for illegal EU subsidies to Airbus, the plane maker.

EU Competition Commissioner Margrethe Vestager warned that Broadcom’s behaviour “is likely, in the absence of intervention, to create serious and irreversible harm to competition”.

“We have strong indications that Broadcom, the world’s leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anticompetitive practices,” she said.

Broadcom in a brief statement said it intended to appeal the decision in the European courts “and in the meantime comply with the commission’s order”.

The ongoing investigation centres on Broadcom’s highly popular TV and modem chipsets, devices that offer television and internet access to customers at home or work.

The commission said it had obtained information that Broadcom might be requiring firms to buy only its components, or granting them rebates and other advantages if they buy in high volume.

The commission said it had also heard Broadcom might be bundling products or deliberately undermining the “interoperability” between Broadcom products and other products.

The commission in June sent a “statement of objections on interim measures” to Broadcom requiring it to swiftly stop such alleged practices and the company now has just 30 days to implement the changes.

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • PM dispels lockdown rumours, gifts masks

    Prime Minister Hun Sen on November 12 denied rumours that he will lock down the country in response to increased Covid-19 fears, referring to them as propaganda aimed at destabilising the country. In a Facebook post, he said some people had spread rumours that the government

  • SilkAir adds flight to Phnom Penh schedule

    Silkair (Singapore) Pte Ltd is increasing its flight frequency between Phnom Penh and Singapore with a third weekly flight on Saturdays, according to Cambodia Airports’ Facebook page. The other flights offered are on Tuesdays and Sundays, with an estimated Phnom Penh arrival time at 5:35pm