Broadcom Gets EU Competition Complaint Over VMware

Dow Jones03:12
 

By Edith Hancock

 

U.S. chipmaker Broadcom is fielding an EU antitrust complaint from cloud software groups over how the company is managing its VMware business.

The complaint from CISPE -- a lobby group for European cloud software providers in Europe that counts Amazon Web Services and Microsoft as associate members -- also calls for interim measures to halt what it calls the company's "ongoing abuse" in a statement Thursday. Interim measures are temporary legal orders the European Commission can impose -- which can include ceasing a particular business practice -- to protect a party's rights or property while an investigation is active.

"In January 2026, Broadcom signalled the termination of its VMware Cloud Service Provider Program in Europe," the group said in a statement Thursday, saying that move came on top of price hikes, bundling and demands for up-front payments. "This latest Broadcom action will force many European [cloud software providers] to exit the market," it said. The group is asking for an immediate suspension of Broadcom's termination of the program, the reinstatement of a program that let smaller providers use VMware software in their cloud solutions and protections against retaliation from the company.

The group launched a legal fight with the commission last year seeking to annul its decision to approval of Broadcom's $61 billion acquisition of cloud computing firm VMware in 2023. The commission had warned the companies during its review that it was concerned the deal could hinder competition for certain hardware components, leading the companies to offer a package of commitments that officials said eased their concerns.

"Broadcom strongly disagrees with the allegations by CISPE, an organisation funded by hyperscalers, which misrepresent the realities of the market," a Broadcom spokesperson said. "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," they said.

The commission didn't immediately respond to a request for comment.

 

Write to Edith Hancock at edith.hancock@wsj.com

 

(END) Dow Jones Newswires

March 19, 2026 15:12 ET (19:12 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment