Key Points
- Fidelity and Broadcom have settled a lawsuit over access to “business-critical” software.
- Fidelity had accused Broadcom of threatening to cut off its access to VMware’s virtualization software.
- The dispute started after Broadcom acquired VMware in 2023 and changed its product lineup.
- Fidelity said losing access to the software would have caused widespread outages.
Fidelity Investments has settled a lawsuit with the chipmaker Broadcom, ending a dispute that threatened to disrupt the financial giant’s operations. Fidelity had accused Broadcom of threatening to cut off its access to “business-critical” software, a move that could have led to widespread outages and trading disruptions.
The legal battle began after Broadcom acquired VMware in 2023. Fidelity has been using VMware’s “virtualization” software since 2005 to manage its servers, and the software has become a central part of its infrastructure.
After the acquisition, Broadcom revamped VMware’s product line, bundling the software into “expensive” new packages. When Fidelity tried to renew its subscription, it claimed Broadcom refused to honor the old contract and insisted that Fidelity buy one of the new, more expensive bundles.
Fidelity, which has 50 million customers and manages $17.5 trillion in assets, said that losing access to the software would be catastrophic. It would cause outages across its platforms, prevent customers from accessing their accounts, and even lock employees out of key internal systems.
The company filed a lawsuit in November, seeking a court order requiring Broadcom to continue providing the software. The two companies have now reached an agreement, and Fidelity has moved to dismiss the lawsuit.
“Broadcom’s services to Fidelity will continue uninterrupted,” a Fidelity spokesperson said. “There will be no impact on Fidelity’s business operations, customers, associates, or business partners.”
