The Cloud Infrastructure Services Providers in Europe and four national digital-business associations have formally asked the European Commission to impose interim measures on U.S. chipmaker Broadcom, saying recent licensing revisions to VMware products are driving sharp price rises and excluding many cloud providers.
What the groups are asking
In a joint letter dated July 10, CISPE — which represents nearly 50 members across Europe and counts Microsoft and Amazon as associate members — joined Belgium’s Beltug, France’s Cigref, Germany’s VOICE and CIO Platform Nederland in urging EU competition and tech chiefs to act quickly. They want a transition period of at least three years while the European Commission continues its probe into Broadcom’s changes to the VMware cloud service provider ecosystem.
Allegations and Broadcom’s response
The trade groups say Broadcom has imposed steep price increases on users of VMware’s virtualization platform and has effectively blocked thousands of providers from deploying and buying the software. Those practices, the associations argue, risk concentrating market power among a handful of large cloud players.
"We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners (VCSPs) helping them offer alternatives to the hyperscalers and meet the evolving needs of European businesses and organisations,"
Broadcom said it disagrees with the allegations and characterized CISPE as an organisation funded by large cloud providers that misrepresents market realities. The company emphasized its investment in European VMware Cloud Service Provider partners.
Regulatory status and implications
The European Commission confirmed receipt of the letter. CISPE initially filed for interim relief in March after Broadcom restructured the VMware cloud service provider arrangements following its 2023 acquisition of VMware.
- Who: CISPE plus Beltug, Cigref, VOICE and CIO Platform Nederland
- What: Request for interim measures and at least a three-year transition period
- Why: Alleged price hikes and exclusion of many providers from VMware deployments
What this means for businesses and cloud users
If regulators grant interim measures, affected cloud providers could see a temporary halt or rollback of the licensing terms Broadcom implemented, potentially stabilizing pricing and access while the formal investigation proceeds. For businesses that rely on VMware virtualization — including enterprise IT departments and smaller cloud service providers — the outcome will influence hosting choices, contract negotiations and near-term IT budgets.
| Item | Detail |
|---|---|
| Letter date | July 10 |
| Requested transition | At least 3 years |
| CISPE membership note | Nearly 50 members; Microsoft and Amazon are associates |
The case highlights the tension between chip and software vendors reshaping partner programs and European cloud actors seeking to preserve competition and access. The Commission’s next steps will be watched closely by both hyperscalers and smaller providers with VMware-dependent business models.
