"Businesses - both cloud providers and their customers - are being irreparably damaged by Broadcom's unfair actions, which we believe are illegal. 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."
"CISPE claims that since Broadcom completed its $69 billion takeover of VMware in October 2023, prices have risen tenfold, payment is demanded upfront, products are bundled regardless of customer need, and minimum commitments are based on potential rather than actual consumption."
CISPE, a trade body representing nearly 50 European cloud providers, filed a complaint with the European Commission against Broadcom for terminating the VMware Cloud Service Provider program. The organization claims Broadcom's actions constitute illegal market abuse and anticompetitive behavior that damages hundreds of cloud providers and reduces customer choice. Since acquiring VMware in October 2023, Broadcom has implemented tenfold price increases, eliminated upfront payment options, bundled products regardless of customer needs, and based minimum commitments on potential rather than actual consumption. The VCSP program officially closed in January with a March 31 deadline for completing transactions. After that date, only select suppliers can sell VMware subscriptions, effectively destroying market opportunities for many smaller providers across Europe.
#broadcom-vmware-acquisition #anticompetitive-practices #cloud-service-providers #european-commission-complaint #market-regulation
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