(Bloomberg) -- Broadcom Inc. convinced the European Union to shut down an antitrust investigation after pledging to change contracts that regulators said could compel set-top box makers to use its chips.
The chipmaker will no longer require or induce original equipment manufacturers, or OEMs, to source a minimum amount of so-called systems-on-a-chip for TV set-top boxes, xDSL modems, fiber modems or cable modems from the company, the European Commission said in an emailed statement on Wednesday. The pledge covers the world outside China and will last seven years.
Click here to read more about the EU's probe
“Producers of set-top-boxes and internet modems, telecom and cable operators and ultimately consumers will benefit from competition between chipmakers in terms of lower prices and more innovative products,” EU Competition Commissioner Margrethe Vestager said in the statement.
The EU can drop cases without fines if companies make binding pledges that solve its concerns. Firms that breach those commitments can be fined.
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