European cloud service providers are pressing the European Commission to intervene in Broadcom’s restructuring of the VMware partner program, arguing the changes threaten the viability of smaller cloud businesses and limit customer choice. The Cloud Infrastructure Service Providers in Europe (CISPE) filed an antitrust complaint, seeking an immediate halt to the termination of the VMware Cloud Service Provider Program (CSPP) in Europe, which Broadcom signaled in January 2026.
The dispute centers around Broadcom’s decision to drastically reduce the number of partners with access to VMware products, effectively excluding most European cloud service providers. CISPE contends this move creates a dangerous concentration of power, potentially leading to virtual monopolies in some markets where vendors become entirely reliant on Broadcom. This action follows Broadcom’s $69 billion acquisition of VMware in October 2023, a deal that has drawn scrutiny over its potential impact on competition.
CISPE alleges “ongoing abuse” by Broadcom, citing significant price increases – reportedly up to tenfold, with some customers facing a 900 percent rise – alongside forced product bundling and commitment requirements based on projected, rather than actual, usage. “After imposing outrageous and unjustified price hikes immediately following the acquisition of VMware, Broadcom is now applying the ‘coup de grâce,’” stated Francisco Mingorance, CISPE Secretary General, according to The Register. “We need urgent intervention to force them to change.”
Broadcom, however, strongly disputes these claims. In a statement, the company said it “strongly disagrees with the allegations by CISPE, an organization funded by hyperscalers, which misrepresent the realities of the market.” Broadcom maintains its commitment to investing in its European VMware Cloud Service Provider partners and helping them compete with larger hyperscalers, offering alternatives to meet the needs of European businesses. IT Pro reported on this response.
CISPE’s Broader Challenge to the Merger
This latest complaint builds on CISPE’s ongoing legal challenge to the European Commission’s approval of the Broadcom-VMware merger. In July 2025, CISPE filed an appeal with the European General Court, seeking to annul the Commission’s decision, arguing it failed to adequately assess the risks associated with the acquisition and Broadcom’s incentives to monetize VMware’s dominant position in server virtualization software. CISPE detailed its arguments in a press release, highlighting concerns that Broadcom aimed to significantly increase VMware’s revenue – by 60-80% within three years – through aggressive pricing and bundling tactics.
CISPE’s concerns are rooted in Broadcom CEO’s public commitments to substantially increase VMware’s EBITDA, a target that CISPE argues could only be achieved through aggressive monetization of its existing customer base. The organization also points to the financing structure of the acquisition, with Broadcom taking on significant debt, as creating a strong financial incentive to extract cash rapidly from VMware’s installed base.
Hyperscaler Funding and Program Changes
CISPE currently represents 50 members, including Amazon Web Services and Microsoft as “adherent members.” The organization notes that these hyperscalers do not have voting rights and are restricted from participating in certain CISPE activities. This structure underscores CISPE’s focus on supporting independent cloud service providers. The termination of the CSPP, announced earlier this year, will leave only a select group of partners with access to VMware products, further consolidating the market.
The changes to the VMware partner program are not the only point of contention. CISPE also raised concerns about the European Commission’s initial approval of the Broadcom-VMware merger, arguing that the Commission did not adequately consider the potential for price increases and tighter contractual lock-in. TechSpot reported that the initial shake-up triggered an EU antitrust complaint.
The European Commission has not yet responded to the latest complaint regarding the CSPP termination. The outcome of both the antitrust complaint and the appeal to the European General Court will have significant implications for the future of the European cloud market and the competitive landscape for VMware products.
What comes next will depend on the European Commission’s response to CISPE’s complaint and the ongoing proceedings at the European General Court. The decisions made in these cases will likely set a precedent for how regulators approach similar acquisitions and market restructuring in the cloud computing sector. Readers are encouraged to share their thoughts and experiences with the evolving cloud landscape in the comments below.
