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ARTICLE · 14 OCTOBER 2025

Tesco's £100m Claim Against Broadcom, VMware And Computacenter

Addleshaw Goddard
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Tesco has initiated legal action against Broadcom, VMware, and Computacenter, alleging breaches of contract and competition law after Broadcom's acquisition of VMware led to changes in software licensing practices.

United KingdomAntitrust/Competition Law
James Hyde
James Hyde
Paul Chaplin
Paul Chaplin
James Mort
James Mort
Colette Watling
Colette Watling

Tesco has initiated legal action against Broadcom, VMware, and Computacenter, alleging breaches of contract and competition law after Broadcom's acquisition of VMware led to changes in software licensing practices. Tesco claims these changes—discontinuing perpetual licences and bundling products into costly subscriptions—are anti-competitive and undermine its contractual renewal rights, impacting its critical IT infrastructure. This case is significant for businesses relying on enterprise software licences, especially those using resellers or facing vendor policy changes. Businesses should review their licensing arrangements now.

What happened?

Tesco has brought proceedings against Broadcom, VMware and Computacenter alleging breaches of contract, statutory duties, and competition law, seeking amongst other things, damages of at least £100m, various declarations, specific performance and injunctive relief. The claims arise from Broadcom's changes to its business

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