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

  • Municipal hall releases map detailing colour coded Covid risks by commune

    Phnom Penh municipal governor Khuong Sreng released an official map detailing the red, yellow and dark yellow zones within the city under the new lockdown orders for Phnom Penh announced on April 26. The designation of red, dark yellow and yellow corresponds to areas with high,

  • Inter-provincial travel ban lifted; Phnom Penh and Takmao not exempted

    The government on April 25 decided to lift the inter-provincial travel ban and the closure of tourist attractions across the country, effectively immediately. The travel ban and closures of all resorts were imposed on April 6 and 17 respectively in a bid to curb the spread of Covid-19,

  • Gov't mulls extension of Phnom Penh, Takmao lockdown

    The Inter-ministerial National Commission for the Control and Enforcement of Lockdown held a video conference meeting on April 25 to review a draft document on the extension of lockdown in Phnom Penh and adjacent Kandal province’s Takmao town. The meeting was chaired by Minister of

  • Phnom Penh, Takmao lockdown extended for another week

    The government late on April 26 announced an extension of lockdown in Phnom Penh and adjacent Takmao town in Kandal province for another seven days – or longer if residents do not comply with Covid-19 preventive measures and the community outbreak does not subside – until May 5. According

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Tottenham Hotspur to wear ISF Cambodia logo on jerseys in match against Sheffield United

    Last year, the Indochina Starfish Foundation (ISF) – an NGO providing education to underprivileged children in Cambodia – made global headlines with its “socially distanced” football initiative. This year, a world-class football club – Tottenham Hotspur FC – will wear special edition jerseys to show their support for ISF