European cloud service providers are pressing the European Union to intervene in a dispute with Broadcom, alleging anti-competitive practices following its acquisition of VMware. The core of the complaint centers on Broadcom’s decision to significantly alter the VMware Cloud Service Provider Program (VCSP) in Europe, effectively limiting access to VMware products for many providers and dramatically increasing prices. This situation, impacting businesses across the continent, highlights growing concerns about market dominance in the cloud computing sector and the potential for stifled innovation.
The dispute isn’t simply about access to software; it’s about the future of competition in the European cloud market. Cloud service providers, often smaller companies, rely on partnerships with technology giants like VMware to offer comprehensive solutions to their clients. The changes implemented by Broadcom, according to the Cloud Service Provider Industry Association (CISPE), threaten the viability of these providers and could ultimately lead to increased reliance on larger “hyperscaler” companies like Amazon Web Services and Microsoft. Understanding the role of cloud service providers is crucial to understanding the impact of these changes.
Broadcom’s Actions Spark Antitrust Concerns
In January 2026, Broadcom signaled its intention to terminate its VMware Cloud Service Provider program in Europe, a move CISPE describes as unilateral. The organization states this decision removed nearly all but a select few partners, effectively excluding the majority of European cloud service providers from selling VMware products. This came after Broadcom completed its $61 billion acquisition of VMware in November 2023.
Adding fuel to the fire are accusations of substantial price increases. CISPE alleges that Broadcom has imposed price hikes ranging up to tenfold, with some customers reporting increases as high as 900 percent. Reports from September 2025 indicated these price increases were creating a significant barrier to entry for IT professionals seeking to learn and implement VMware technologies. CISPE claims Broadcom is employing tactics like product bundling and commitment requirements based on projected, rather than actual, usage, further straining the financial resources of European cloud providers. “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,” said Francisco Mingorance, Secretary General of CISPE.
Broadcom Defends Its Strategy
Broadcom strongly refutes the allegations leveled by CISPE. In a statement, the company asserts that CISPE, an organization it claims is funded by hyperscalers, “misrepresent the realities of the market.” Broadcom maintains its commitment to investing in its European VMware Cloud Service Provider partners and helping them “offer alternatives to the hyperscalers and meet the evolving needs of European businesses and organizations.” The company’s position underscores a fundamental disagreement over the definition of fair competition and the role of large technology companies in the cloud ecosystem.
The Broader Context: Hyperscalers and European Cloud Strategy
CISPE’s membership currently stands at 50, and notably includes Amazon Web Services and Microsoft as “adherent members.” However, CISPE states these hyperscalers lack voting rights and are restricted from participating in certain activities within the organization. This structure reflects a deliberate attempt to represent the interests of independent cloud service providers and differentiate them from the dominant market players. The European Union has been increasingly focused on fostering a more competitive cloud market, aiming to reduce reliance on US-based hyperscalers and promote digital sovereignty. The European Cloud Strategy, launched in 2021, outlines a vision for a secure, open, and interoperable European cloud ecosystem.
Ongoing Legal Challenges
This isn’t the first legal challenge Broadcom has faced regarding the VMware acquisition. In July, CISPE filed an appeal with the European General Court seeking to annul the European Commission’s approval of the deal. That case remains ongoing, adding another layer of complexity to the situation. The initial approval by the EC in November 2023 came with conditions designed to address competition concerns, but CISPE argues these conditions are insufficient to prevent Broadcom from leveraging its market power to the detriment of European cloud providers. The outcome of this appeal could have significant implications for future technology mergers and acquisitions in Europe.
What’s Next?
The EU regulator is now considering CISPE’s complaint, and a decision could take several months. The investigation will likely focus on whether Broadcom’s actions constitute an abuse of its dominant market position and whether they violate EU antitrust laws. The case highlights the increasing scrutiny of large technology companies and their impact on competition in the digital economy. The next key date is currently unconfirmed, but CISPE expects to receive a response from the EU regulator by the conclude of the second quarter of 2026.
This situation underscores the importance of a robust and competitive cloud market for European businesses and citizens. Share your thoughts on the future of cloud computing in Europe in the comments below.
