In a move that underscores the growing tensions in the enterprise software sector, U.K. supermarket behemoth Tesco has filed a lawsuit against Broadcom Inc., its VMware subsidiary, and reseller Computacenter PLC, alleging breach of contract over perpetual software licenses. The suit, lodged in London’s High Court, claims that Broadcom’s refusal to extend support for VMware products acquired under perpetual licenses could jeopardize Tesco’s operations, potentially disrupting the nation’s food supply chain.

Tesco, which relies on VMware technology for around 40,000 virtual workloads powering its digital infrastructure, argues that the defendants’ actions violate existing agreements. The retailer is seeking at least £100 million ($134 million) in damages from each party, with the figure poised to rise as the dispute drags on, according to details reported in The Register.

Broadcom’s Post-Acquisition Overhaul Sparks Industry Backlash

This legal battle is not isolated. Broadcom, after its $69 billion acquisition of VMware in 2023, shifted the company from perpetual licensing to a subscription-based model, a change that has irked numerous large customers. Tesco’s complaint echoes similar grievances from U.S. telecom giant AT&T, which sued Broadcom in September 2024 over comparable support denials, as noted in coverage from The Register.

Siemens has also pursued litigation on parallel grounds, highlighting a pattern of disputes. Industry observers point out that Broadcom’s strategy, while aimed at boosting recurring revenue, has led to accusations of anticompetitive behavior, including probes by EU antitrust regulators as far back as 2024, per reports in Reuters.

The High Stakes for Critical Infrastructure

For Tesco, with annual revenues exceeding £69.9 billion ($93.5 billion), the stakes are particularly high. The supermarket chain warns that without continued support, its IT systems—integral to inventory management, online services, and supply logistics—could falter, leading to empty shelves and broader economic ripples. This concern was amplified in The Register‘s analysis, which suggests Tesco is leveraging the lawsuit to force negotiations amid stalled talks.

Broadcom defends its Cloud Foundation platform as offering superior value, a stance reiterated in statements to outlets like Proactive Investors. Yet, critics argue the pivot disproportionately burdens legacy customers locked into older contracts.

Reseller’s Role and Broader Implications

Computacenter, as the intermediary reseller, finds itself caught in the crossfire, accused by Tesco of failing to honor support obligations. This tripartite suit underscores the complexities of software distribution chains, where resellers often bear the brunt of vendor policy shifts.

The case could set precedents for how tech giants handle post-merger integrations, especially in regulated sectors. As Techzine Global reported, Tesco’s heavy dependence on VMware amplifies the urgency, potentially influencing antitrust scrutiny worldwide.

Potential Outcomes and Market Repercussions

Analysts anticipate that Tesco’s size and influence might pressure Broadcom into settlements, similar to ongoing disputes. The lawsuit, filed amid Tesco’s unrelated product recalls and share buybacks, as covered in International Supermarket News, reflects a broader corporate strategy of aggressive defense.

If unresolved, this could accelerate migrations away from VMware, reshaping enterprise virtualization markets. For now, the proceedings highlight the fragility of digital dependencies in essential industries, with Tesco positioning itself as a defender against what it calls exploitative practices.