- Broadcom received European approval to acquire VMware in July 2023
- The Cloud European Competition Observatory of Cispe has issued Broadcom two red warnings
- CISPE is now asking the European Commission to annul its decision in the midst of continuous concerns
The providers of cloud infrastructure services in Europe (CISPE) have presented a formal appeal to challenge the European Commission’s decision to approve the acquisition of Broadcom VMware.
Cispe, a group that represents infrastructure suppliers of the sovereign cloud of Europe, and recently in the news for presenting complaints about the injustices of Microsoft cloud tariffs, now seeks the cancellation of the commission’s decision.
The news occurs two years after the European Commission approved the acquisition, at which time Broadcom promised to deliver continuous interoperability.
In November 2024, Cispe announced that it would launch the European Cloud Competition Observatory (ECCO) to monitor competition. Later, in February 2025, the organization wrote: “In the case of Broadcom, CISPE members and customers report little or no commitment of the company in its problems.”
As such, ECCO assigned a red/critical state to Broadcom, which was reconfirmed in May 2025 when ECCO wrote: “This second report finds that the imposition and brutal Broadcom of the terms of unfair contracts for the cloud infrastructure service provides to continue without facilitating.”
At that time, Ecco requested “urgent official investigations”, while the general secretary of CISPE, Francisco Mingorance, said that “Broadcom does not show interest in finding solutions, or even working with European suppliers of cloud infrastructure.”
“Urgent action is needed,” Mingorance added.
On July 24, 2025, CISPE said that there had been errors in the law and a defective competitive evaluation by the commission in the first place, although the commission had recognized the competitive risks, it had not imposed the conditions in Broadcom.
Since the acquisition of VMware, Broadcom has terminated contracts with short warning periods and introduced new license terms with drastic price increases (up to 10x) and mandatory commitments of several years.
In this most recent development, Mingorance said that hospitals, universities and municipal authorities have also been affected, not only cloud service providers.
“The commission was warned that this would happen, but it remained. Now he must reconsider his decision,” concluded the general secretary.
Techradar Pro He has asked Broadcom an answer to Cispe’s complaint, but we don’t receive an immediate response.
