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Broadcom Reportedly Faces EU Antitrust Scrutiny In Dominance Probe

Broadcom Inc. (AVGO) is under antitrust scrutiny by the European Union for potentially using its market dominance to improperly pressure customers to buy its semiconductors and harm rivals, Bloomberg reported citing people familiar with the matter.

The inquiry, which is preliminary, focuses on Broadcom's sales of chips in set-top box hardware used by the cable and satellite industry to provide television and internet to consumers, the report said.

The U.S. Federal Trade Commission is also examining Broadcom's practices.

The report said that the EU is asking if companies have ever been threatened with patent suits, whether Broadcom said it would raise prices or withdraw rebates from customers who didn't exclusively use its chips and whether it used technical compatibility as a lever to force the industry to stay with its products.

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