Broadcom—EU opened antitrust investigation for anticompetitive practices following VMware acquisition
The European Commission opened an antitrust investigation into Broadcom in October 2024 over concerns the company is using anticompetitive practices following its $69 billion VMware acquisition. The investigation focuses on allegations that Broadcom is tying VMware products together to force customers into comprehensive deals, restricting interoperability with competing products, and using its dominant position to lock customers into its ecosystem. The European Cloud Competition Observatory gave Broadcom a 'red' rating indicating serious competitive concerns.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Antitrust & Competition | -against | primary | -1.00 |
| Corporate Governance | -against | secondary | -0.50 |
| Overall incident score = | -0.166 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)× agency (compelled ×0.25)
Evidence (1 signal)
European Commission opened formal antitrust investigation into Broadcom VMware practices
The European Commission announced in October 2024 that it opened a formal antitrust investigation into Broadcom's practices following its VMware acquisition. The investigation focuses on alleged anticompetitive bundling, restrictions on interoperability with competitors, and leveraging dominant market position to lock in customers.