Benzinga | Jul 2, 2021 03:07PM EDT

FTC Orders Broadcom To Cease Monopolistic Conduct

* The Federal Trade Commission filed a proposed consent order to settle antitrust charges against Broadcom Inc (NASDAQ:AVGO). It requires Broadcom to stop forcing customers to buy components mostly or only from Broadcom.

* Earlier, the FTC blamed Broadcom for illicitly controlling the market for semiconductor components that deliver television and broadband internet.

* Broadcom had allegedly maintained monopoly power through long-term agreements with at least ten original equipment manufacturers of set-top boxes and broadband devices.

* The contracts reportedly prevented those OEMs from buying chips from the company's rivals.

* Broadcom also forged similar deals with major service providers.

* The FTC voted unanimously to file charges against the company. It also voted to accept a proposed consent order for public comment.

* The proposed agreement will prohibit Broadcom from exclusivity contracts with specific customers. It will also require the company not to condition access to chips on exclusivity deals.

* Price action: AVGO shares traded lower by 0.48% at $467.42 on the last check Friday.