The European Union took the unusual step of imposing interim measures on semiconductor maker Broadcom Inc. to limit its dominance of the market.

The injunction marks the first time the EU has used such a measure in 18 years and comes at a time when the EU has been increasing its scrutiny of large tech companies. It orders Broadcom to stop putting anti-competitive restrictions on sales agreements with customers to avoid "serious and irreparable" harm to the market.

The probe into Broadcom's practices is ongoing.

"We have strong indications that Broadcom, the world's leading supplier of chipsets used for TV set-top boxes and modems, is engaging in anti-competitive practices," said Margrethe Vestager, the EU's antitrust chief. "Broadcom's behaviour is likely, in the absence of intervention, to create serious and irreversible harm to competition. We cannot let this happen, or else European customers and consumers would face higher prices and less choice and innovation."

Broadcom is the world's largest supplier of chipsets for TV set-top boxes and modems, which are integral to cable TV services.

The European Commission has alleged that Broadcom is imposing restrictions in its agreements with its six main customers that prevent them from buying chipsets from other suppliers. These measures include price rebates and preferential technical support deals.

Broadcom was ordered to end these restrictions within 30 days and the interim measures will remain in force for up to three years. Completion of the investigation into the company's behaviour is expected by the middle of next year.

Alec Burnside, a partner at Dechert's Brussels office, said the appetite for interim measures comes out of the perception that antitrust remedies have been too slow and markets have tipped by the time the Commission gets there.

"The Commission wants to be providing an ambulance service rather than sending out hearses," he added.

Catriona Hatton, antitrust and competition partner in Baker Botts' Brussels office, said investigations like these can run for years, so ordering a company to stop certain practices in the meantime is a very interventionist approach.

"It is particularly interesting for digital markets, as recently we have seen a lot of antitrust commentary and regulator and expert support advocating greater use of these measures to prevent irreparable harm to competition in fast-moving markets, pending the outcome of antitrust investigations," she said. "So today's development signals a shift towards more up-front intervention by the European Commission in digital markets."

Broadcom said in a statement that it intends to appeal the Commission's decision but will in the meantime comply with the Commission's order. The court's judgment in the appeal would determine how much scope the Commission has to pursue this type of action in future cases, Hatton said.

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