Broadcom’s 69b $ VMware Deal Sparks Legal Steps from the European Cloud Alliance
The European Union was approved by Cloud Computing and VMware virtualization company in December 2023 acquisitions of Cloud Computing and virtualization software company; However, it may reveal this decision. The decision will appear providers of cloud infrastructure services in Europe (CISPE) and claim that it has re -presented serious risks.
What do you say in its attraction?
The Alliance of Cloud’s providers, which includes Amazon Web Services, filed a legal complaint with the EU Court 24 July.
“The dominance of VMware software in the virtualization market means that the unfair new license conditions promoted by Broadcom affect almost any European organizational cloud technology,” said Francisco Mingorance, Cispe Secretary General.
“Not only cloud services, hospitals, universities and municipal authorities now face unavailable accounts and strict long -term obligations that threaten the flexibility and availability of their cloud infrastructure.
Cispe claims that Broadcom has suddenly terminated existing VMware contracts, sometimes only with mere weekends, and introduced new license conditions with ten times costly and multi -year obligations.
It was this month that Broadcom has transformed the VMware partner program at the invitation only and effectively cut off the smaller cloud provider by ending its contracts and eliminated the model of further sales that allowed them to offer VMware -based services through larger partners.
Cispe claims that the failure of the evaluation of the competition of the European Commission and the “legal errors” signals sufficiently signaling to justify the cancellation of the agreement. Over the past two years, before taking this drastic step, the group “consistently” raised its concerns with the European Commission and tried to exclude Broadcom to negotiate the conditions of Faire, but no party took any steps.
Broadcom reaction
Broadcom spokesman said Techrepublic: “Broadcom strongly disagrees with these accusations. The European Commission, together with twelve other jurisdictions around the world, approved our acquisition of VMware after a thorough merger and we will be a commission at that time.
“We continue to bring our customers better choices and solutions to solve their most complex technological challenges.”
The next step is to convince the court and eventually ruled that the Commission must cancel the approval of the agreement.
VMware’s acquisition has always been controversial, despite its consent
The acquisition of VMware Chipmaker Broadcom in November 2023 remains one of the large technological shops in history. At that time, SOE expressed an expressed superpress that this could lead to price increases, reduced support and stunted innovation – the results appear in previous TAKERC CA and Symantec technologies.
In addition to the EU, the agreement required regulatory approval from Great Britain, South Korea, Japan, China and several other jurisdictions. China has stipulated that Broadcom is making VMware server software compatible with competitors, while the EU has captivated a milder approach and stated that it was satisfied with Broadcom’s commitments to open its host adapter code and promote interoperability for third -party hardware.
Note that none of the requirements for increasing dominance of VMware Braadcom on the virtualization software market. Finally, in the hardware segment – where the EU has hit – there are several viable competitors such as NAVANIX, Microsoft and Citrix.
The focus of Broadcom’s virtualization market complaints can be the strategic step of CISPE, suggesting that the interest is not only to overturn the approval of the commission, but forcing regulators to act against what it describes as offensive practices.
With the heating of the AI race, the first half of 2025 was peppered by acquisitions of cloud infrastructure companies, chips and agent platforms.