US-based Broadcom, maker of chips for power smartphones, computers and networking equipment, has pledged not to offer incentives to TV and modem makers to encourage them to acquire more than 50% of their products worldwide or in Europe, according to the foreign press on April 28.
“In these uncertain times, we welcome the opportunity to avoid protracted litigation and to resolve the investigation without recognition of liability or the imposition of a fine,” Broadcom said in a statement.
Industry watchers here are predicting Broadcom’s decision could help Korean players, such as Telechips, make foray globally. The firm first supplied the country’s first homemade set-top box AP chip to KT Corp. in 2019, and is expected to widen the scope of collaboration this year.
The decision comes after the EU launched an investigation in June 2019 on the discovery that Broadcom had such deals with six companies. EU regulators saw the move to be undermining the competition. They have warned that the use of an interim order, could happen more frequently.
The European Commission said it will decide whether to accept Broadcom’s offer, which would be valid for five years.
In Korea, the Fair Trade Commission is investigating Broadcom on similar charges. Some local set-top box makers have stopped dealing with the US-based company on account of the exclusivity deals. “Many suppliers have decided against working with Broadcom,” said a close source to the matter. SK Broadband and LG Uplus have also adopted set-top boxes using Synaptics’ chip technology.
The Elec is South Korea’s No.1 tech news platform.