Broadcom Sues EU Over US Document Request

• Broadcom faces an EU antitrust complaint from lobbying group CISPE, which in March asked regulators to stop the company from ending VMware's Cloud Service Provider program in Europe
• The lawsuit is a procedural action to protect legal professional privilege under U.S. rules, while Broadcom says it continues to cooperate with other EU information requests
• CISPE criticized the lawsuit, arguing Broadcom demands disclosure from members affected by its practices while maintaining 'opacity around its own internal communications' in the investigation

Summary: Broadcom Sues EU Over US Document Request

Key Development:

Broadcom has filed a lawsuit against EU antitrust regulators at Luxembourg's General Court, challenging demands for documents containing legal advice from its U.S. lawyers in an investigation related to its 2023 acquisition of VMware.

Main Issue:

The dispute centers on legal professional privilege differences between jurisdictions. In the EU, attorney-client privilege only covers communications with external lawyers, not in-house counsel. Broadcom argues that as a U.S.-headquartered company, it has a "fundamental right" to protect privileged communications under U.S. legal standards. The company emphasized this is a "procedural action solely to protect Broadcom's rights" while maintaining it continues cooperating with other European Commission information requests.

Background Context:

In March, lobbying group CISPE—with nearly 50 European members including Microsoft and Amazon as associates—filed an EU antitrust complaint against Broadcom. CISPE urged regulators to halt Broadcom's termination of the VMware Cloud Service Provider programme in Europe. CISPE, which previously challenged the Commission's approval of the VMware acquisition, criticized Broadcom's lawsuit, stating the company "cannot demand complete disclosure from CISPE members...while simultaneously maintaining opacity around its own internal communications."

Market Implications:

The case highlights ongoing regulatory scrutiny of Broadcom's post-acquisition VMware business practices in Europe. The dispute over legal privilege could set precedent for how U.S. companies handle EU antitrust investigations. The European Commission confirmed it will defend its decisions in court, signaling potential for prolonged legal proceedings that could impact Broadcom's European operations and compliance costs.