Samsung accuses Broadcom of violating antitrust laws in lawsuit

Samsung Electronics has filed a federal lawsuit against its chip supplier, Broadcom Inc., accusing it of violating federal antitrust law.

The lawsuit, filed Monday in the U.S. District Court for the Northern District of California, claims Broadcom is preventing Samsung from switching to other suppliers of key components used in its flagship Galaxy phones.

The lawsuit alleges that Broadcom created a “binding agreement” that forces Samsung to purchase essential cellphone components, such as Wi-Fi and GPS chips, exclusively from Broadcom. If Samsung were to source those components from Broadcom’s competitors, it would still have to pay Broadcom, according to the lawsuit.

Samsung claims that this arrangement effectively eliminates competition and forces them into a monopoly where they are unable to consider or pursue more competitive options in the market. The lawsuit claims that Broadcom’s practices violate federal antitrust laws designed to promote fair competition and protect consumers from monopolistic behavior.

The legal move could have serious implications for the tech industry, especially as it highlights ongoing tensions between big tech companies and their suppliers.