Broadcom Under EU Scrutiny Over VMware Dependency Amid Analyst Optimism

Broadcom (AVGO) is facing scrutiny from European Union authorities over its VMware dependency and potential antitrust penalties.

The EU has been surveying cloud service providers about their reliance on VMware and migration challenges, which could lead to regulatory concerns.

Partners who don't comply with Broadcom's restructured partnership framework by March 31 may lose their VMware subscription resale rights, putting them at risk of losing business.

The potential EU antitrust penalties could reach up to 10% of Broadcom's total worldwide annual revenue, which would be a significant financial blow to the company.