European cloud providers: "Broadcom is delivering the coup de grâce"

The European cloud association CISPE (Cloud Infrastructure Service Providers in Europe) filed a competition complaint against Broadcom with the EU Commission on March 19. The organization accuses the technology group of abusing its dominant market position with VMware virtualization software and calls on the Directorate-General for Competition to take immediate countermeasures.

In the complaint, CISPE primarily criticizes the cumulative cost increase for European cloud service providers (CSPs) by more than 1,000 percent, according to its own statement. This results from price increases, forced product bundling, advance payment obligations, and minimum purchase quantities based on potential rather than actual usage. As early as May 2025, a report by European cloud communities documented price increases of 800 to 1,500 percent. CISPE also states that it supports the complaint filed in May 2025 by the German IT user association Voice e.V., which also denounces price increases of several hundred percent and pressure on customers with expiring contracts.

Broadcom terminates partner program in Europe

According to CISPE, the termination of the VMware Cloud Service Provider Program (VCSP) in Europe, announced in January 2026, is particularly serious. Only a few hand-picked partners are likely to continue, excluding the vast majority of European CSPs. Broadcom already discontinued the white-label program for small and medium-sized enterprises in 2025. The provider does not explain why Broadcom is terminating the program specifically in Europe while it continues to exist elsewhere.

CISPE Secretary General Francisco Mingorance stated: "With the termination of the Broadcom program allowing access to VMware virtualisation software, 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. The only way to stop bullies is to stand up to them."

Dutch and Danish communities report damages

The complaint is supported by several national cloud associations. According to CISPE, Simon Besteman of the Dutch Cloud Community described a situation where costs had "risen exponentially" and providers had been "sabotaged." Dissent led to "threats, retaliation, and ostracism." Finn Vagner of the Danish Cloud Community spoke of an "extremely critical and high-pressure situation" for affected members. CISPE did not provide exact revenue losses but stated that CSPs had lost a "significant portion" of their business "overnight."

In addition to the immediate suspension of the VCSP termination and the re-admission of European CSPs, CISPE also calls for the reintroduction of the white-label program and protection against retaliation by Broadcom. The association warns that Broadcom's actions endanger the European Sovereign Cloud Strategy by destroying the autonomy of European providers and increasing dependence on US hyperscalers. In the long term, there is a threat of monopolization, reduced competition, and higher costs.

(fo)