– 31-Day Public Comment Period from April 7 –
The Korea Fair Trade Commission (KFTC), chaired by Han Ki-jeong, has drafted a provisional consent decision regarding Broadcom’s alleged violation of the Fair Trade Act, and will be collecting opinions from relevant ministries and stakeholders for 31 days from April 7 to May 7, 2025.
Broadcom is suspected of requiring domestic set-top box manufacturers to exclusively use its system-on-chip (SoC) components in their production.
Broadcom applied for the consent decision process on October 31, 2024, during the KFTC’s investigation into the alleged violation of the Fair Trade Act. Following a full commission meeting on January 22, 2025, the KFTC decided to initiate the consent decision procedure. Consequently, a provisional consent decision was prepared in consultation with Broadcom.
Key contents of the provisional consent decision are as follows:
- Broadcom will not require domestic set-top box manufacturers (hereinafter "counterparties") to exclusively use Broadcom’s SoCs.
- Broadcom will not amend existing contracts with counterparties in a disadvantageous manner if the counterparties attempt to engage with competitors.
Additionally:
- Broadcom will not require counterparties to purchase more than 50% of their SoC demand from Broadcom, nor offer pricing or non-pricing (e.g., technical support) benefits on the condition of such purchase agreements.
- Broadcom will not impose disadvantages such as suspending or delaying SoC sales/deliveries or withdrawing/modifying existing benefits if the counterparties refuse to comply with the over-50% purchase request.
To ensure compliance with these corrective measures, Broadcom plans to implement a Compliance Program, conduct annual training for employees on the Fair Trade Act, and report on the implementation status to the KFTC annually through 2031.
Furthermore, Broadcom has proposed coexistence measures aimed at supporting domestic fabless companies and the local system semiconductor industry, including:
- Supporting educational programs to train semiconductor professionals,
- Providing design automation software (EDA) support to fabless and other small businesses in the semiconductor sector,
- Supporting promotional activities for small businesses in the semiconductor field (e.g., participating in semiconductor exhibitions).
To implement these coexistence measures, Broadcom plans to contribute approximately KRW 13 billion (approx. $9.5 million) to a dedicated fund.
The KFTC will collect opinions on the provisional consent decision from April 7, 2025, for 31 days. The draft decision has been published on the KFTC website (www.ftc.go.kr → News → Notices), and any interested party may submit their comments.
The final consent decision will be determined after reviewing the collected opinions and will be finalized following deliberation and resolution by the KFTC.