Broadcom Inc.
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| Basic information | |
|---|---|
| Founded | 1961 |
| Legal Structure | Public |
| Industry | Information Technology, Semiconductors, Telecommunications |
| Also known as | |
| Official website | https://www.broadcom.com/ |
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 Hewlett-Packard.
Consumer impact summary
- User freedom: Anti-consumer/anti-competitive practices.
- User privacy: Most Broadcom software requires an account/software key to download.
- Business model: IT/Semiconductors/Telecommunications, for profit.
- Market control: ??
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 Broadcom Inc. 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.[1] 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."[2]
In October 2019, Broadcom was ordered by the European Commission to stop allegedly anticompetitive practices.[3] 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.[2] Such contract terms are alleged to stifle innovation and harm competition in the global supply market.[4] 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.[3] 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.[5]
Acquires VMware and ends perpetual licenses, and Cease and Desist letters/notifications to customers
- Main article: 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.
See also
References
- ↑ Cimilluca, Dana; Kendall, Brent; Benoit, David (17 Jan 2018). "FTC Investigates Broadcom Over Negotiations With Customers". The Wall Street Journal. Archived from the original on 17 Jan 2018. Retrieved 27 Aug 2025.
- ↑ 2.0 2.1 Scarcella, Mike (31 Aug 2021). "Broadcom hires Baker Donelson team for antitrust, tech lobbying". Reuters. Archived from the original on 20 Jul 2025. Retrieved 27 Aug 2025.
- ↑ 3.0 3.1 Michaels, Daniel (16 Oct 2019). "Broadcom Ordered by EU to Halt Allegedly Anticompetitive Practices". The Wall Street Journal. Archived from the original on 30 Jun 2020. Retrieved 27 Aug 2025.
- ↑ Presse, AFP - Agence France (12 Jul 2023). "EU Clears US Chipmaker Broadcom's $61 Bn VMware Takeover". Barron's. Archived from the original on 22 Mar 2026.
- ↑ Lomas, Natasha (7 Oct 2020). "European antitrust regulators settle with Broadcom a year after 'interim measures' flex". TechCrunch. Archived from the original on 22 Jul 2025. Retrieved 27 Aug 2025.