FTC Probing Broadcom Over Forcing Exclusive Agreements With Clients

United States based computer chip designer and manufacturer Broadcom Inc. (AVGO) is yet again under investigation by the U.S Federal Trade Commission (FTA) over complaints that it forces exclusive agreements with customers.

Broadcom is a major supplier of Bluetooth and WiFi chips to companies like iPhone manufacturer Apple Inc. (AAPL).

According to a report released by FTC, the commission says it’s still in the early stages of collecting information regarding if Broadcom forced illegal exclusive agreements on its customers.

On the receiving end, Broadcom is blaming the global chip shortage to justify an increased demand from its customers. Back in July 2021, the FTC said it had filed a proposed order to settle antitrust charges against Broadcom.

The consent order required the company to stop demanding that its customers buy mostly or only from Broadcom.

Similarly, back in October 2020 Broadcom signed a similar agreement with the European Commission.

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