Broadcom Inc.: Difference between revisions
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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 |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> | ||
===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=== | ||