Republic of Korea: Fair Trade Commission initiated a consent procedure for Broadcom’s commitments addressing alleged violations of Monopoly Regulation and Fair-Trade Act

On 7 February 2025, the Korean Fair-Trade Commission (FTC) announced the initiation of a consent decree procedure for Broadcom, following the company's application to address alleged violations of the Monopoly Regulation and Fair-Trade Act. Broadcom, a manufacturer of system semiconductor components (SoC) for set-top boxes, had been requiring domestic set-top box manufacturers to exclusively use Broadcom's SoCs in their products, thereby limiting competition. The FTC's investigation determined that Broadcom's practices potentially violated fair trade laws by restricting the ability of set-top box manufacturers to use components from competing suppliers. In response, Broadcom proposed a series of corrective measures to improve market competition and support the domestic semiconductor industry, particularly startups and small-to-medium enterprises. Broadcom's proposed measures include ceasing the requirement for exclusive use of its SoCs and refraining from altering existing contracts to disadvantage its trading partners. Additionally, Broadcom will not demand that more than half of a partner's SoC requirements be purchased from Broadcom, nor will it offer preferential pricing or support contingent on such purchases. To ensure compliance, Broadcom plans to implement a self-regulatory program, including annual compliance training for employees and reporting to the FTC. Furthermore, Broadcom has committed to supporting the domestic semiconductor industry through various initiatives, such as establishing education centres for semiconductor specialists, providing business consulting for startups, and hosting industry seminars and conferences. These efforts will be funded by a KRW 130 billion (approximately USD 109'000'000) support fund aimed at fostering collaboration and growth within the Korean semiconductor sector.