By @finimize
Publication Date: 2025-11-17 21:21:00
What’s going on here?
Fidelity’s tech division is taking Broadcom to court, accusing the chipmaker of threatening to cut off mission-critical software and risking major disruptions to trading for millions of customers.
What does this mean?
This legal battle centers on VMware’s virtualization software—technology that Fidelity depends on to keep its trading and operations running smoothly. After Broadcom acquired VMware last year for $69 billion, it switched longstanding software deals to higher-cost bundles and denied Fidelity the option to renew its previous contract. Fidelity argues this change violates its renewal rights, putting its massive $17.5 trillion asset base and 50 million customers at risk if access is lost. Any breakdown could stall trades or block customer activity—raising the specter of broader market impact. For now, a court order has forced Broadcom to maintain Fidelity’s software access until at least late January while the lawsuit moves forward.
Why…
