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On 2 July 2021, the Federal Trade Commission (FTC) filed a complaint against Broadcom alleging that the company has illegally monopolized the market of semiconductor components. The company Broadcom provides chip components to manufacturers of television and internet equipment, such as top boxes and broadband devices. The FTC claims that Broadcom has a monopoly on three types of semiconductor components used in devices providing television and internet and is a significant supplier of another five types of chips. The FTC alleges that Broadcom obtained its market position because it entered into illegal agreements with equipment manufacturers and service providers to prevent them from buying chips from its competitors. The complaint states that the exclusivity and loyalty agreements violate the competition law and it orders Broadcom to not enter into exclusivity or loyalty agreements with manufacturers of equipment or service providers.
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