Broadcom Sues EU Antitrust Regulators Over VMware Deal Documents

Broadcom Inc. (NASDAQ:AVGO) filed a lawsuit on May 13 against European Union antitrust regulators, challenging their request for documents containing legal advice the company received regarding the VMware acquisition. The chip giant argues in the lawsuit filed at the Luxembourg-based General Court that the requests exceed regulatory authority.

Details of the Action

Broadcom seeks to prevent the European Commission from accessing documents it claims are protected by legal professional privilege. The company argues the requests are disproportionate and violate its legal rights.

Company's Position

Broadcom insists the Commission's requests are unlawful and go beyond the scope of the VMware investigation. It maintains the documents are irrelevant to the probe.

Precedents and Context

This is not the first time Broadcom has faced regulatory hurdles in Europe. The company previously agreed to regulatory conditions to secure approval for the VMware deal, including competition safeguards. The lawsuit comes amid the EU's tightening of antitrust enforcement in the tech sector.

Potential Financial Impact

The legal dispute could delay the closing of the VMware acquisition or impose additional conditions, potentially affecting Broadcom's expansion plans. However, the company has not disclosed any immediate financial impact.