Broadcom faces FTC antitrust probe: Report

Broadcom calls the inquiry, reportedly for anticompetitive tactics, "immaterial to our business."
Written by Jake Smith, Contributor

Broadcom is being investigated by the FTC to determine if it engaged in anticompetitive tactics in negotiations with customers, according to the Wall Street Journal.

Broadcom has been under the probe for months and was recently issued subpoenas, the report said. It doesn't extend into Broadcom's wireless business.

The semiconductor company changed some contracts to make customers buy a percentage of its production output rather than an exact number, the Wall Street Journal said.

"This FTC review is immaterial to our business, does not relate to wireless and has no impact on our proposal to acquire Qualcomm," Broadcom told Barron's in a statement.

In November 2017, Broadcom offered to acquire Qualcomm in a deal worth $130 billion. Qualcomm shareholders have rejected Broadcom's deal saying the proposal "significantly undervalues" Qualcomm.

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