EU probes Broadcom VMware licensing changes after $61B deal

European Union antitrust authorities have intensified scrutiny of Broadcom Inc.’s licensing practices for VMware following its $61 billion acquisition. Regulators are investigating whether the technology giant’s overhaul of subscription models and product bundling constitutes anti-competitive behavior that harms enterprise customers. The probe focuses on allegations that Broadcom eliminated perpetual licenses and forced bundled purchases, significantly increasing costs for organizations dependent on VMware virtualization software. This investigation marks a critical test of EU merger enforcement, as watchdogs assess whether post-acquisition conduct violates commitments made during the deal's approval process. Industry stakeholders report widespread disruption as companies face mandatory migrations to new subscription tiers. The outcome could establish significant precedents for how regulators police software licensing changes after major tech consolidations. Broadcom has previously defended its strategy as necessary modernization but now faces formal regulatory pressure to justify its commercial approach.