Full Breakdown
European Cloud Providers Challenge Broadcom's VMware Program Termination
3/20/2026, 11:33:34 PM
Antitrust Complaint Filed Against Broadcom
The Cloud Infrastructure Services Providers in Europe (CISPE), a trade association representing nearly 50 cloud service providers (CSPs), has filed an antitrust complaint with the European Commission (EC) regarding Broadcom's recent termination of VMware's Cloud Service Provider (VCSP) program. This program, which was officially closed in January 2026, has drastically reduced the number of CSP partners eligible to sell VMware products, from over 4,000 to just 19 in the United States and approximately nine in the United Kingdom. The complaint alleges that Broadcom's actions constitute an illegal squeeze on customer choice and threaten the viability of many smaller tech suppliers.
Background of the VMware CSP Program Closure
Broadcom's acquisition of VMware for $69 billion in October 2023 marked a significant shift in VMware's partner strategy. Following the acquisition, Broadcom implemented stringent requirements for CSP partners, including a minimum operational capacity of 3,500 cores, effectively disqualifying hundreds of smaller providers. The new program is invite-only and favors larger partners that cater to enterprise clients, leaving many small-to-medium-sized businesses without access to VMware's offerings.
Industry Impact and Criticism
CISPE has characterized Broadcom's decision as a "death sentence" for numerous tech suppliers, arguing that it irreparably damages both cloud providers and their customers. Francisco Mingorance, CISPE's Secretary General, stated, “Businesses – both cloud providers and their customers – are being irreparably damaged by Broadcom’s unfair actions, which we believe are illegal.” The group claims that since the acquisition, prices for VMware products have increased tenfold, and terms have become more restrictive, including upfront payment demands and bundled products that do not align with customer needs.
Critics within the industry have voiced concerns that Broadcom's actions represent a forced consolidation that limits market competition. One CSP remarked, “This isn't partner management, it's market control,” highlighting fears that customers will face higher costs and reduced choices as a result of Broadcom's strategy.
Official Responses and Next Steps
A spokesperson for the European Commission confirmed receipt of CISPE's complaint, stating that it is currently under assessment in accordance with standard procedures. Broadcom, on the other hand, has strongly denied the allegations, asserting that CISPE misrepresents market realities and that the company remains committed to investing in its CSP partners.
CISPE is requesting that the EC impose interim measures to halt the termination of the VCSP program, restore access for excluded partners, and prevent any retaliatory actions by Broadcom against those affected. This situation continues to evolve as the EC evaluates the implications of Broadcom's actions on competition within the European cloud services market.
Verbatim Quotes
- “ Francisco Mingorance, CISPE secretary general, said of the complaint: “Businesses – both cloud providers and their customers – are being irreparably damaged by Broadcom’s unfair actions, which we believe are illegal.” — Francisco Mingorance, Secretary General, CISPE
- “This isn't partner management, it's market control,” — Anonymous CSP
- “We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners (VCSPs) helping them offer alternatives to the hyperscalers and meet the evolving needs of European businesses and organisations.” — Broadcom Spokesperson
Conflicting Reports & Gaps
While CISPE claims that hundreds of CSPs are affected by Broadcom's decision, specific numbers regarding the total impact on the European market remain unclear. Additionally, the extent of price increases and changes in service terms has been reported variably across sources, indicating a need for further investigation into the actual market conditions following Broadcom's acquisition of VMware.
