Broadcom Stock Rises Despite New EU Scrutiny

Broadcom shares climbed 1.5% on Friday while European Union officials reviewed changes to VMware's licensing model. Regulators are examining whether the revised terms could limit customer choice or harm smaller cloud providers.

EU officials have begun asking European cloud companies about their reliance on VMware software and how easily they could transition to alternatives. The inquiry also covers new certification requirements linked to VMware subscriptions.

The regulatory probe comes ahead of a March 31 deadline. That deadline could stop smaller European cloud providers from continuing to sell specific VMware subscriptions. The information-gathering process does not mean regulators have reached any final conclusion.

Broadcom completed its acquisition of VMware in 2023. VMware virtualization tools remain widely used across cloud platforms and enterprise IT environments.