Broadcom was up 1.7% to $279.02 shortly after 2 p.m. ET even as news broke that European antitrust regulators will ask the tech firm to temporarily halt business practices such as "exclusively clauses with TV and modem makers," Reuters reported, citing a source familiar with the matter.
Top European Commission officials plan to brief EU nations' antitrust agencies Monday about the move -- a prelude to taking formal action against Broadcom, Reuters said. An EU halt order would continue until regulators have had a chance to review the Broadcomm exclusivity deals' impacts and decide whether they harm competition in the field.
EU regulators launched their Broadcom probe in June, focusing on alleged practices such as "exclusive purchasing obligations and tying rebates or other benefits to exclusive or minimum-purchase requirements," Reuters reported.
However, the company told Reuters that it doesn't expect a "material impact on its set-top box or broadband modem business" from a temporary halt order, which AVGO said wouldn't preclude the company from selling any particular products, according to Reuters.