- Broadcom got European approval to acquire VMware in July 2023
- Cispes European Cloud Competition Observatory has issued Broadcom two red warnings
- Cispe is now asking Europe -Commission to cancel its decision in the midst of ongoing concerns
Sky infrastructure providers in Europe (CISPE) have filed a formal appeal to challenge Europe -Commission’s decision to approve Broadcom’s acquisition of VMware from 2023.
Cispe – a group that represents Europe’s sovereign Sky Infrastructure providers, and recently in the news of having brought complaints about Microsoft’s unreasonable cloud licensing fees – is now seeking cancellation of the Commission’s decision.
The news comes about two years after the Europe Commission approved the acquisition, at which time Broadcom promised to deliver continued interoperability.
In November 2024, Cispe announced that it would launch the European Cloud Competition Observatory (ECCO) to monitor competition. Later in February 2025, the organization wrote: “In the case of Broadcom, CISPE members and customers report a little or no commitment from the company about their questions.”
As such, ECCO awarded a red/critical status to Broadcom, which was confirmed in May 2025, when ECCO wrote: “This second report finds that Broadcom’s broad and brutal introduction of unreasonable contract conditions for Sky Infrastructure Service continues unabated.”
At that time, ECCO called for “urgent official investigations”, while CISPE General Secretary Francisco Mingorance noted that “Broadcom shows no interest in finding solutions or even working with European Sky Infrastructure Providers.”
“Uponing action is needed,” added mingorance.
On July 24, 2025, Cispe claimed that there had been errors in the law and a defective competitive assessment of the Commission in the first place – although the Commission had recognized competitive risks, it had not introduced conditions on Broadcom.
Since the VMware acquisition, Broadcom has terminated contracts with short notice periods and introduced new license terms with drastic price increases (up to 10x) and mandatory multi-year obligations.
In this latest develop, Mingorance noted that hospitals, universities and municipal authorities have also been affected – not just cloud service providers.
“The Commission was warned that this would happen, yet it stood by it. It must now reconsider its decision,” concluded the Secretary General.
Techradar Pro have asked Broadcom for a response to Cispe’s complaint, but we did not receive an immediate response.
