Broadcom Inc.: Difference between revisions

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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 |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 |website=Barrons}}</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/ |access-date=27 Aug 2025 |website=TechCrunch}}</ref>

===Aquisition of ~~[[VMWare]]~~, ending of perpetual licenses and Cease and Desist letters/notifications to customers===

===Aquisition of VMware, ending of perpetual licenses and Cease and Desist letters/notifications to customers===

{{Main|VMware extraordinary price increase for licenses since acquisition by Broadcom}}

{{Main|VMware extraordinary price increase for licenses 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.

==See also==

* [[VMWare|VMware by Broadcom]]

*[[VMWare|VMware by Broadcom]]

==References==

[[Category:{{PAGENAME}}]]

@@ Line 31: / Line 31: @@
 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 |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 |website=Barrons}}</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/ |access-date=27 Aug 2025 |website=TechCrunch}}</ref>
-===Aquisition of [[VMWare]], ending of perpetual licenses and Cease and Desist letters/notifications to customers===
+===Aquisition of VMware, ending of perpetual licenses and Cease and Desist letters/notifications to customers===
-{{Main|VMware extraordinary price increase for licenses since acquisition by Broadcom}}
+{{Main|VMware extraordinary price increase for licenses 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.
 ==See also==
-* [[VMWare|VMware by Broadcom]]
+*[[VMWare|VMware by Broadcom]]
 ==References==
 {{reflist}}
 [[Category:{{PAGENAME}}]]