Broadcom Inc.: Difference between revisions
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{{Stub}} | {{Stub}} | ||
{{CompanyCargo | {{CompanyCargo | ||
|Founded=1961 | |Founded=1961 | ||
|Industry=Information Technology, Semiconductors, Telecommunications | |Industry=Information Technology, Semiconductors, Telecommunications | ||
|Logo=Broadcom logo | |Logo=Broadcom logo 2016.svg | ||
|ParentCompany= | |ParentCompany= | ||
|Type=Public | |Type=Public | ||
|Website=https://www.broadcom.com/ | |Website=https://www.broadcom.com/ | ||
|Description=American technology company covering a wide range of computer products and services. | |||
}} | }} | ||
'''Broadcom Inc.''' is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets. | '''Broadcom Inc.''' is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets. | ||
The company that would later become Broadcom Inc. was established in 1961 as HP Associates, a semiconductor products division of [[HP Inc.|Hewlett-Packard]]. | The company that would later become Broadcom Inc. was established in 1961 as HP Associates, a semiconductor products division of [[HP Inc.|Hewlett-Packard]]. | ||
==Consumer | ==Consumer impact summary== | ||
*'''User freedom:''' Anti-consumer/anti-competitive practices. | |||
*User freedom: Anti-consumer/anti-competitive practices. | *'''User privacy:''' Most Broadcom software [[Forced account|requires an account]]/software key to download. | ||
*User privacy: Most Broadcom software [[Forced account|requires an account]]/software key to download. | *'''Business model:''' IT/Semiconductors/Telecommunications, for profit. | ||
*Business model: IT/Semiconductors/Telecommunications, for profit. | *'''Market control:''' ??<!-- I don't know what to write for this - Left4Code --> | ||
*Market control: ??<!-- I don't know what to write for this - Left4Code --> | |||
==Incidents== | ==Incidents== | ||
This is a list of all consumer-protection incidents this company is involved in. Any incidents not mentioned here can be found in the [[:Category:{{FULLPAGENAME}}|{{PAGENAME}} category]]. | This is a list of all consumer-protection incidents this company is involved in. Any incidents not mentioned here can be found in the [[:Category:{{FULLPAGENAME}}|{{PAGENAME}} category]]. | ||
=== | ===Anti-competitive practices investigations=== | ||
In January 2018, it was reported that the FTC had been investigating Broadcom for several months for engaging in anti-competitive tactics while negotiating with customers.<ref>{{Cite web |last=Cimilluca |first=Dana |last2=Kendall |first2=Brent |last3=Benoit |first3=David |date=17 Jan 2018 |title=FTC Investigates Broadcom Over Negotiations With Customers |url=https://www.wsj.com/articles/ftc-investigates-broadcom-over-negotiations-with-customers-1516212396 |url-access=subscription |url-status=live |archive-url=https://archive.ph/fgv9c |archive-date=17 Jan 2018 |access-date=27 Aug 2025 |website=[[The Wall Street Journal]]}}</ref> In 2021, Broadcom agreed to settle the antitrust complaint, in which the U.S. Federal Trade Commission claimed that the company abused its monopoly power using restrictive contract terms and threats of retaliation against customers the company deemed "disloyal."<ref name=":0">{{Cite web |last=Scarcella |first=Mike |date=31 Aug 2021 |title=Broadcom hires Baker Donelson team for antitrust, tech lobbying |url=https://www.reuters.com/legal/litigation/broadcom-hires-baker-donelson-team-antitrust-tech-lobbying-2021-08-31/ |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20250720111700/https://www.reuters.com/legal/litigation/broadcom-hires-baker-donelson-team-antitrust-tech-lobbying-2021-08-31/ |archive-date=20 Jul 2025 |access-date=27 Aug 2025 |website=[[Reuters]]}}</ref> | In January 2018, it was reported that the FTC had been investigating Broadcom for several months for engaging in anti-competitive tactics while negotiating with customers.<ref>{{Cite web |last=Cimilluca |first=Dana |last2=Kendall |first2=Brent |last3=Benoit |first3=David |date=17 Jan 2018 |title=FTC Investigates Broadcom Over Negotiations With Customers |url=https://www.wsj.com/articles/ftc-investigates-broadcom-over-negotiations-with-customers-1516212396 |url-access=subscription |url-status=live |archive-url=https://archive.ph/fgv9c |archive-date=17 Jan 2018 |access-date=27 Aug 2025 |website=[[The Wall Street Journal]]}}</ref> In 2021, Broadcom agreed to settle the antitrust complaint, in which the U.S. Federal Trade Commission claimed that the company abused its monopoly power using restrictive contract terms and threats of retaliation against customers the company deemed "disloyal."<ref name=":0">{{Cite web |last=Scarcella |first=Mike |date=31 Aug 2021 |title=Broadcom hires Baker Donelson team for antitrust, tech lobbying |url=https://www.reuters.com/legal/litigation/broadcom-hires-baker-donelson-team-antitrust-tech-lobbying-2021-08-31/ |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20250720111700/https://www.reuters.com/legal/litigation/broadcom-hires-baker-donelson-team-antitrust-tech-lobbying-2021-08-31/ |archive-date=20 Jul 2025 |access-date=27 Aug 2025 |website=[[Reuters]]}}</ref> | ||
In October 2019, Broadcom was ordered by the European Commission to stop allegedly anticompetitive practices.<ref name=":1">{{Cite web |last=Michaels |first=Daniel |date=16 Oct 2019 |title=Broadcom Ordered by EU to Halt Allegedly Anticompetitive Practices |url=https://www.wsj.com/articles/broadcom-ordered-by-eu-to-halt-allegedly-anticompetitive-contract-practices-11571221103 |url-access=subscription |archive-url=https://archive.ph/3DgAM |archive-date=30 Jun 2020 |access-date=27 Aug 2025 |website=[[The Wall Street Journal]]}}</ref> In 2021, Broadcom agreed to settle the antitrust complaint which claimed it had abused its monopoly power through restrictive contract terms and threats of retaliation against non-compliant customers.<ref name=":0" /> Such contract terms are alleged to stifle innovation and harm competition in the global supply market.<ref>{{Cite web |last=Presse |first=AFP - Agence France |date=12 Jul 2023 |title=EU Clears US Chipmaker Broadcom's $61 Bn VMware Takeover |url=https://www.barrons.com/news/eu-clears-us-chipmaker-broadcom-s-61-bn-vmware-takeover-20d196dc |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20260322130849/https://www.barrons.com/news/eu-clears-us-chipmaker-broadcom-s-61-bn-vmware-takeover-20d196dc |archive-date=22 Mar 2026 |website=[[Barron's]]}}</ref> European Competition Commissioner Margrethe Vestager said that Broadcom's contract terms with six main customers would "create serious and irreversible harm to competition" if no action were taken.<ref name=":1" /> The company agreed to a commitment to suspend agreements containing exclusivity or quasi-exclusivity arrangements and a commitment not to enter into such agreements for seven years.<ref>{{Cite web |last=Lomas |first=Natasha |date=7 Oct 2020 |title=European antitrust regulators settle with Broadcom a year after ‘interim measures’ flex |url=https://techcrunch.com/2020/10/07/european-antitrust-regulators-settle-with-broadcom-a-year-after-interim-measures-flex/ |url-status=live |archive-url=https://web.archive.org/web/20250722101246/https://techcrunch.com/2020/10/07/european-antitrust-regulators-settle-with-broadcom-a-year-after-interim-measures-flex/ |archive-date=22 Jul 2025 |access-date=27 Aug 2025 |website=[[TechCrunch]]}}</ref> | In October 2019, Broadcom was ordered by the European Commission to stop allegedly anticompetitive practices.<ref name=":1">{{Cite web |last=Michaels |first=Daniel |date=16 Oct 2019 |title=Broadcom Ordered by EU to Halt Allegedly Anticompetitive Practices |url=https://www.wsj.com/articles/broadcom-ordered-by-eu-to-halt-allegedly-anticompetitive-contract-practices-11571221103 |url-access=subscription |archive-url=https://archive.ph/3DgAM |archive-date=30 Jun 2020 |access-date=27 Aug 2025 |website=[[The Wall Street Journal]]}}</ref> In 2021, Broadcom agreed to settle the antitrust complaint which claimed it had abused its monopoly power through restrictive contract terms and threats of retaliation against non-compliant customers.<ref name=":0" /> Such contract terms are alleged to stifle innovation and harm competition in the global supply market.<ref>{{Cite web |last=Presse |first=AFP - Agence France |date=12 Jul 2023 |title=EU Clears US Chipmaker Broadcom's $61 Bn VMware Takeover |url=https://www.barrons.com/news/eu-clears-us-chipmaker-broadcom-s-61-bn-vmware-takeover-20d196dc |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20260322130849/https://www.barrons.com/news/eu-clears-us-chipmaker-broadcom-s-61-bn-vmware-takeover-20d196dc |archive-date=22 Mar 2026 |website=[[Barron's]]}}</ref> European Competition Commissioner Margrethe Vestager said that Broadcom's contract terms with six main customers would "create serious and irreversible harm to competition" if no action were taken.<ref name=":1" /> The company agreed to a commitment to suspend agreements containing exclusivity or quasi-exclusivity arrangements and a commitment not to enter into such agreements for seven years.<ref>{{Cite web |last=Lomas |first=Natasha |date=7 Oct 2020 |title=European antitrust regulators settle with Broadcom a year after ‘interim measures’ flex |url=https://techcrunch.com/2020/10/07/european-antitrust-regulators-settle-with-broadcom-a-year-after-interim-measures-flex/ |url-status=live |archive-url=https://web.archive.org/web/20250722101246/https://techcrunch.com/2020/10/07/european-antitrust-regulators-settle-with-broadcom-a-year-after-interim-measures-flex/ |archive-date=22 Jul 2025 |access-date=27 Aug 2025 |website=[[TechCrunch]]}}</ref> | ||
=== | ===Acquires VMware and ends perpetual licenses, and Cease and Desist letters/notifications to customers=== | ||
{{Main|VMware licensing change since acquisition by Broadcom}} | {{Main|VMware licensing change since acquisition by Broadcom}} | ||
On 22 November 2023, Broadcom Inc. completed the acquisition of [[VMware]] for $61 billion. Perpetual licenses for the software were ended and changed to a subscription-based model. Customers report that this new model results in higher overall pricing for their use of VMware, with documented increases ranging from 800% to 1,500%. Several notable businesses who are customers of VMware have started legal action against Broadcom. | On 22 November 2023, Broadcom Inc. completed the acquisition of [[VMware]] for $61 billion. Perpetual licenses for the software were ended and changed to a subscription-based model. Customers report that this new model results in higher overall pricing for their use of VMware, with documented increases ranging from 800% to 1,500%. Several notable businesses who are customers of VMware have started legal action against Broadcom. | ||
==See also== | ==See also== | ||
*[[VMWare|VMware by Broadcom]] | *[[VMWare|VMware by Broadcom]] | ||