Last Friday, the Federal Trade Commission (FTC) unanimously charged Broadcom (AVGO  ) with using exclusivity agreements to maintain an illegal monopoly over the chips used in set-top boxes and internet routers.

The vote was immediately followed by a proposed consent order that would bar Broadcom from entering into similar exclusivity agreements with major manufacturers of these set-top boxes.

The consent order also stipulates that Broadcom can no longer retaliate against customers who source parts from its competitors.

In a statement, Broadcom said it was pleased to move forward with the proposed consent order. "While we disagree that our actions violated the law and disagree with the FTC's characterizations of our business, we look forward to putting this matter behind us," the company said. "We are equally pleased that the FTC investigation into our other businesses has been closed without action."

According to the FTC, Broadcom began to strong-arm its clients into restrictive contracts back in 2016, when the company faced pressure from lower-priced rivals.

Mainly, the FTC alleged that Broadcom used the threat of higher prices to browbeat set-top manufacturers into contracts into exclusivity agreements.

In one instance, the FTC claimed that Broadcom told its customers that even placing a single bid with one of its rivals could lead to the loss of favorable pricing terms.

"By entering exclusivity and loyalty agreements with key customers at two levels of the supply chain, Broadcom created insurmountable barriers for companies trying to compete with Broadcom," the FTC said in its release.

The FTC's proposed consent order broadly mirrors a similar agreement Broadcom recently made with the European Commission. That agreement similarly bars Broadcom from entering into exclusivity agreements with makers of cable boxes and internet modems.

Stanford C Bernstein analyst Stacy Ragston told Bloomberg that the consent order should have "no material impact" on Broadcom's business since the company had been operating under nearly identical terms prior to the FTC's ruling.

Last Friday's move was one of the first significant antitrust actions under the brief tenure of FTC's new chairperson, Lina Khan. The day before its action against Broadcom, the commission voted along party lines to rescind a 2015 policy, a policy which Ms.Khan blamed for restricting the agency's authority. That vote also authorized staff at the FTC to open investigations in key areas like the health and technology sectors.

While those votes fell upon party lines, it's notable that the two Republican commissioners joined with their Democratic colleagues in voting against Broadcom.

"Today's complaint reflects the Commission's commitment to enforcing the antitrust laws against monopolists, including in high-technology industries," said FTC Bureau of Competition Acting Director Holly Vedova in a statement. "Today's action is a step toward addressing that problem by pushing back against strong-arm tactics by a monopolist in important markets for key broadband components. There is much more work to be done, and we need the tools and resources to do it. But I have full confidence in FTC staff's commitment to this effort."