By Diane Bartz and Stephen Nellis
Broadcom said in a statement that it was pleased to resolve the matter. “While we disagree that our actions violated the law and disagree with the FTC’s characterizations of our business, we look forward to putting this matter behind us,” it said.
Broadcom reached a similar agreement with the European Commission in October 2020.
The FTC said that Broadcom had a monopoly in three kinds of chips used to make TV set-top boxes and broadband devices.
The commission vote to accept the settlement was 4-0 with Chair Lina Khan, who joined the panel in June, not participating.
Broadcom has become a major supplier of WiFi and Bluetooth chips to companies like Apple Inc <AAPL.O>. But the FTC complaint relates to an older segment of its business that deals with chips for wired communications, including television set-top devices made for television and broadband service providers such as AT&T Inc and Verizon Inc .
In its statement, Broadcom said “the FTC investigation into our other businesses has been closed without action.
Rasgon said that some investors had worried the FTC settlement offer “could be the tip of the iceberg” of a broader investigation, but that Broadcom’s statement seemed to ally those fears.
“If one of the worries was the (larger) switching business would be next, then that seems to be safe now, Rasgon said.
(Reporting by Diane Bartz in Washington and Stephen Nellis in San Francisco; additional reporting by Akanksha Rana; editing by Jonathan Oatis and Dan Grebler)