- The European Commission’s approval of Broadcom’s acquisition of VMware has been criticized
- CISPE is concerned about price increases and software packages. and locks for clients
- The Commission could have to reassess the agreement if it is canceled
CISPE has argued that the European Commission did not assess clear and publicly known risks when it approved Broadcom’s acquisition of VMware in July 2023.
For example, the company’s CEO had previously committed to increasing VMware’s standalone EBITDA to around 80% in a market that is growing only up to around 8% annually, which CISPE said could only have come from sharp price increases, forced bundling and exploitation of customers, not organically.
CISPE also criticized Broadcom for financing the deal through about $28.4 billion in new debt and $8 billion of VMware debt, creating “a powerful financial incentive to quickly extract cash from VMware’s installed base.”
The European Cloud Providers Group also warned that some anticipated risks have since materialized, with rising prices, forced multi-year subscriptions and bundled VMware products increasing costs for European cloud providers.
When the Commission approved the deal, Executive Vice President of Competition Policy Margrethe Vestager noted that Broadcom’s only rival in this space, Marvell, would not be affected by anti-competitive behavior. However, the Commission did not comment on the costs to the customer.
“The Commission looked at this merger with half-closed eyes and declared it safe. By the way,” said CISPE Secretary General Francisco Mingorence in the group’s most recent statement. “Brussels handed Broadcom a blank check to raise prices, secure and squeeze customers.”
In early December 2025, CISPE filed an appeal against the European Commission’s approval of Broadcom’s acquisition of VMware. CISPE’s three main criticisms are that Broadcom’s dominance and its harm to competition have not been adequately assessed, that the risks of the grouping were poorly managed, and that the impacts on innovation were not adequately investigated.
“Not only cloud service providers, but also hospitals, universities and municipal authorities are now facing unaffordable bills and rigid long-term commitments that jeopardize the flexibility and affordability of their cloud infrastructure,” Mingorance wrote in July 2025 when CISPE announced it would take the Commission to court to overturn its approval.
If it is annulled, the European Commission would have to re-examine the agreement under current market conditions.
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