EU Trade Groups Demand Investigation into Broadcom’s Licensing Practices Amid Growing Backlash

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Broadcom is facing backlash over its licensing practices, with EU trade groups demanding an investigation into alleged price gouging and unfair software licensing terms. Despite revisions to its cloud licensing practices, critics argue that the changes do not adequately address their concerns. The trade body CISPE, along with other organizations, have criticized Broadcom for significant price increases, product bundling, and unfair licensing terms that limit customer choice. EU antitrust regulators have been urged to investigate the matter further. On the other hand, Oppenheimer Analyst Rick Schafer has selected Broadcom as one of his top picks in semiconductors, citing its expanding earnings power and defensible technology. Investors can gain exposure to Broadcom shares through various ETFs. AVGO shares were trading down in pre-market trading.

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