CISPE files antitrust complaint over Broadcom VMware partner program changes

A cloud industry group has filed an antitrust complaint with the European Commission, claiming that Broadcom is seeking to use unfair software licensing terms to control the European cloud market.

Cloud Infrastructure Service Providers in Europe (CISPE) is aiming to prevent Broadcom from terminating VMware’s Cloud Service Provider (CSP) partner program at the end of this month, saying it represents an existential threat to European cloud providers.

“With the termination of the Broadcom program allowing access to VMware virtualization software, businesses - both cloud providers and their customers - are being irreparably damaged by Broadcom’s unfair actions, which we believe are illegal," said CISPE secretary general Francisco Mingorance.

"After imposing outrageous and unjustified price hikes immediately following the acquisition of VMware, Broadcom is now applying the ‘coup de grâce’. We need urgent intervention to force them to change. The only way to stop bullies is to stand up to them.”

Earlier this year Broadcom announced plans to terminate the program in Europe, keeping only a minority of specially-picked partners and excluding most European CSPs from selling VMware products, CISPE claimed.

The trade group claims these changes will create virtual monopolies in some markets with vendors entirely dependent on Broadcom.

What CISPE wants from Broadcom

CISPE is now asking the European Commission to implement interim measures. It wants the decision to terminate its VCSP partner program to be immediately suspended, with the readmittance of European cloud service providers, allowing them to continue to sell VMware.

It also wants the reintroduction of the ‘white label’ program, axed by Broadcom in 2025, which previously allowed SMB and smaller cloud providers to offer VMware software as part of their cloud solutions.

Finally, CISPE believes that explicit protections against retaliation from Broadcom may be needed, with a system of fines to ensure compliance with these terms.

Broadcom is locked in an EU battle

The plan to terminate VMware’s Cloud Service Provider partner program came on top of other changes following Broadcom’s acquisition of VMware.

These included price hikes, bundling, and demands for up-front payments alongside minimum commitments based on potential, rather than actual, usage.

CISPE said these moves have increased costs for customers by more than 1,000% in some instances.

"In 2024, within just a few weeks, VMware changed its prices, licensing model, ordering processes, and more — without providing customers with the necessary information or sufficient time to adapt," said Danielle Jacobs, CEO at Beltug, the Belgian Association of CIOs & Digital Technology Leaders.

"To this day, our members continue to contact us about the difficulties they face. The announced shake‑up of the previously well‑functioning ecosystem between VMware partners and end users has only added to the challenges and uncertainty."

CISPE's complaint supports a similar request from Voice e.V, which represents many of the largest IT customers in Germany, filed in May last year. Broadcom has rejected the allegations.

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