Chipmaker Broadcom has been charged with making use of exclusivity deals with buyers to develop “insurmountable barriers” for rivals.

The U.S. Federal Trade Fee said Friday it experienced voted unanimously to charge Broadcom with partaking in anticompetitive carry out to keep its monopoly ability in the marketplace for semiconductor components used in units that produce television and broadband world wide web services.

Underneath a proposed settlement, Broadcom has agreed not to require its buyers to resource components from the organization on an exclusive or close to-exclusive basis or retaliate towards buyers for executing company with its rivals.

The FTC’s action towards Broadcom arrives as it is getting ways to beef up enforcement of Section 5 of the FTC Act, which lets it to sue companies for “unfair solutions of levels of competition.”

“Today’s grievance reflects the commission’s dedication to enforcing the antitrust legislation towards monopolists, including in large-technology industries,” Holly Vedova, acting director of the FTC’s Bureau of Level of competition, said.

“America has a monopoly challenge. Today’s action is a stage towards addressing that challenge by pushing back towards powerful-arm techniques by a monopolist in critical marketplaces for essential broadband components,” she additional.

The FTC accused Broadcom of violating Section 5 by entering lengthy-expression agreements with at least ten OEMs and with service providers that prevented them from acquiring chips from its rivals.

“By entering exclusivity and loyalty agreements with essential buyers at two degrees of the supply chain, Broadcom developed insurmountable limitations for companies hoping to compete with Broadcom,” the fee said.

The chip maker is dominant in the marketplace for broadcast set-top rated boxes, which has been declining as wire-reducing consumers switch to streaming units.

But the FTC noted that “While need for broadcast [set-top rated boxes] is declining, this decline has a ‘long tail.’ Even as lots of consumers slash the wire, there are lots of other consumers who will go on making use of broadcast [set-top rated boxes] for some time to arrive.”

The shifting marketplace dynamics “presented Broadcom with an incentive and possibility to keep its monopoly power” in excess of broadcast [set-top rated boxes] and “to use that ability to weaken rivals in the marketplaces for relevant products,” the fee said.

antitrust, Broadcom, Federal Trade Fee, monopoly, semiconductors