Broadcom Faces Antitrust Complaint Over VMware Pricing & Partner Cuts in Europe

by Anika Shah - Technology
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Broadcom Faces EU Antitrust Complaint Over VMware Licensing Practices

Brussels, March 22, 2026 – Broadcom is facing a competition complaint filed with the European Commission by the Cloud Infrastructure Service Providers in Europe (CISPE), alleging anti-competitive practices related to its VMware software licensing and partner program. The complaint centers on changes implemented after Broadcom’s acquisition of VMware, which CISPE argues are harming European cloud providers and limiting customer choice.

CISPE’s Allegations

CISPE’s complaint, filed on March 19, 2026, details several concerns regarding Broadcom’s actions. In January 2026, Broadcom announced the termination of its VMware Cloud Service Provider program in Europe, significantly reducing the number of partners authorized to sell VMware products . This move, coupled with substantial price increases – reportedly exceeding 1,000 percent in some cases – and restrictive contractual terms, has created a challenging environment for European cloud service providers (CSPs).

Specifically, CISPE alleges that Broadcom is imposing:

  • Sharp Price Hikes: Increases of up to tenfold have been reported, with some customers experiencing price increases as high as 900 percent.
  • Product Bundling: Requiring customers to purchase multiple products or services together.
  • Commitment Requirements: Demanding commitments based on projected rather than actual usage.
  • Limited Partner Access: Restricting access to VMware products to a minor, hand-selected group of partners.

Impact on the European Cloud Market

CISPE argues that these actions are detrimental to the European cloud market, potentially forcing many CSPs to exit the market and creating virtual monopolies. The organization believes that Broadcom’s actions undermine efforts to build a sovereign European cloud infrastructure and increase reliance on overseas providers . The complaint requests interim measures to halt Broadcom’s alleged abuse and restore fair competition.

Broadcom’s Response

Broadcom strongly refutes the allegations made by CISPE, characterizing the organization as being funded by hyperscalers and misrepresenting the market realities . The company maintains its commitment to investing in its European VMware Cloud Service Provider partners and helping them compete with hyperscalers.

Ongoing Legal Challenges

This complaint follows CISPE’s appeal to the European General Court in July 2025, seeking to annul the European Commission’s approval of Broadcom’s acquisition of VMware . That case is currently ongoing. CISPE initially challenged the EC’s approval, arguing that the Commission failed to adequately assess the risks associated with the acquisition and Broadcom’s incentives to increase prices and tighten contractual lock-in .

CISPE Membership

CISPE represents 50 member organizations. It similarly includes Amazon Web Services and Microsoft as “adherent members,” who do not have voting rights and are restricted from participating in certain activities.

Looking Ahead

The European Commission will now investigate CISPE’s complaint. The outcome of this investigation could have significant implications for Broadcom’s operations in Europe and the future of the cloud market. The case highlights the growing scrutiny of large technology acquisitions and the importance of maintaining competition in the cloud computing sector .

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