A trade association representing cloud service providers filed an antitrust complaint today with the European Commission regarding Broadcom’s recent changes to VMware. CISPE urges the regulator to intervene after the chipmaker shuttered the VMware partner program earlier this year. The group argues that Broadcom’s unilateral decisions harm competition and small-to-medium-sized businesses within the European market.
The complaint specifically requests an interim measure requiring Broadcom to reopen the partner program immediately. CISPE demands that displaced partners be reinstated without penalty or retaliation from the vendor, according to the complaint. This legal action aims to preserve access to virtualization tools for independent cloud operators across the continent who rely on these legacy contracts.
Broadcom replaced the previously open access model with a restrictive invite-only alternative following its acquisition of VMware. This new structure favors larger partners working primarily with enterprise-sized clients rather than smaller commercial entities seeking growth. Consequently, the number of eligible cloud service providers has dropped drastically since the acquisition closed and significant new barriers were introduced.
A significant barrier to entry appears in the new requirements imposed by the hardware manufacturer. CSP partners must now operate at least 3,500 cores to qualify for the partnership program. This threshold rendered hundreds of existing providers ineligible for continued collaboration under the new rules established by the parent company.
Data from The Register indicates the scale of the reduction has been severe for the ecosystem. Before Broadcom bought VMware, the virtualization company maintained over 4,000 CSP partners according to February 2024 reporting. Today, VMware reportedly holds only about 19 partners in the United States and nine in the United Kingdom.
In January, Broadcom terminated VMware’s CSP program in Europe, directly prompting this recent antitrust filing. The specific program remains active for transactions until March 31, creating a narrow window for resolution. CISPE is seeking to extend this period indefinitely through regulatory intervention.
This conflict highlights growing tensions between technology giants and independent service providers in the digital economy. Previous antitrust cases involving software vendors have often focused on consumer privacy or data monopolies. This case shifts focus to supply chain access and partnership eligibility for infrastructure providers.
Regulatory bodies in the European Union have shown increasing willingness to scrutinize market consolidation in the tech sector. The European Commission previously investigated similar practices regarding cloud interoperability and data portability. A decision here could set a precedent for how hardware acquisitions impact downstream service markets.
The outcome of this complaint will likely influence how Broadcom manages its software portfolio in the future. If the EC enforces the reinstatement, it could limit the vendor’s ability to dictate terms to channel partners. Conversely, inaction might encourage other consolidation moves without regulatory pushback.
Industry observers will watch for the Commission’s response to the interim measure request in the coming weeks. Broadcom has not issued a public statement regarding the specific allegations filed by the trade association. The situation remains unresolved as both sides prepare for potential regulatory hearings.
