EU Faces Call to Act on Broadcom's VMware Program Changes

CISPE Demands EU Intervention

The Cloud Infrastructure Services Providers in Europe (CISPE) has formally requested that EU antitrust regulators impose an interim measure against Broadcom. The request aims to halt the company's recent termination of the VMware Cloud Service Provider (VCSP) program.

Background of the Dispute

This action follows Broadcom's acquisition of VMware in 2023. Shortly after, Broadcom announced a significant overhaul of VMware's partner ecosystem, effectively ending the VCSP program. CISPE, which represents major cloud providers, argues this unilateral decision excludes the majority of European providers and harms competition. This is the latest step in a conflict that saw CISPE previously sue the European Commission over its approval of the initial acquisition.

Impact on the European Cloud Market

According to CISPE, Broadcom's changes are causing "irreparable damage" to both cloud service providers and their customers across Europe. The group claims the move unfairly disadvantages smaller, local providers by removing their ability to sell VMware-based services, potentially consolidating market power with a few hand-selected partners.

Summary and Next Steps

CISPE is urging for an immediate suspension of the program's termination, the readmission of former partners, and protection against retaliation from Broadcom. The European Commission and Broadcom have yet to publicly respond to the request. The industry now awaits a decision from regulators on whether to intervene.

FAQ

Q: Why is CISPE challenging Broadcom?

A: Broadcom terminated the VMware Cloud Service Provider program, which CISPE claims unfairly removes most European cloud providers from selling VMware products, harming competition.

Q: What specific action is CISPE requesting from the EU?

A: CISPE is calling for an interim measure to immediately suspend the program's termination and reinstate the excluded European service providers.

Source: Investing.com