CISPE has formally appealed to the European General Court to annul the European Commission's decision approving Broadcom's acquisition of VMware. They allege serious legal errors and failures in the competitive assessment process. Broadcom is accused of terminating contracts abruptly and imposing harsh licensing conditions, greatly increasing costs and enforcing long-term commitments. CISPE is concerned that a revamped VMware channel program may restrict access for partners to essential services. Attempts to engage with Broadcom for better terms were reportedly met with refusal. CISPE also criticized the Directorate-General's lack of action to support European providers.
CISPE claims 'errors in law and manifest failures by the Commission in the competitive assessment process ... are significant enough to seek an annulment of the decision.'
Broadcom has unilaterally terminated existing contracts - often with only weeks' notice - and imposed onerous new licensing conditions, including drastic cost increases and mandatory multi-year commitments.
CISPE worry that VMware's recent channel program reboot could bar partners from purchasing and reselling VMware-based cloud services, vital for European cloud solution delivery.
Despite numerous meetings with the Directorate-General for Competition, CISPE states that 'no substantive action was taken to support either European cloud service providers or their customers.'
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