- The European Commission’s approval of Broadcom’s VMware acquisition has been criticized
- CISPE is concerned about price increases, software bundling. and lock-ins for customers
- The Commission may have to re-evaluate the agreement if it is cancelled
CISPE has argued that the European Commission failed to assess clear, publicly known risks when it approved Broadcom’s acquisition of VMware in July 2023.
For example, the company’s CEO had previously committed to growing VMware’s standalone EBITDA by as much as about 80% in a market that’s only growing at about 8% annually, which CISPE says could only come from steep price increases, forced bundling and customer exploitation — not organically.
CISPE also criticized Broadcom for financing the deal through about $28.4 billion in new debt and $8 billion of VMware’s debt, creating “a strong financial incentive to rapidly extract cash from VMware’s installed base.”
The European group of cloud providers also warned that some predicted risks have since materialized, with skyrocketing prices, forced multi-year subscriptions and bundled VMware products driving up costs for European cloud providers.
When the Commission approved the deal, Margrethe Vestager, EVP for Competition Policy, noted that Broadcom’s only rival in this area, Marvell, would not be affected by the anti-competitive conduct. However, the Commission did not comment on customer costs.
“The Commission looked at this fusion with half-closed eyes and declared it safe. With rubber,” CISPE Secretary General Francisco Mingorence said in the group’s latest statement. “Brussels handed Broadcom a blank check to raise prices, lock in and squeeze customers.”
Earlier in December 2025, CISPE filed a case against the European Commission’s approval of Broadcom’s acquisition of VMware. CISPE’s three main criticisms are that Broadcom’s dominance and its damage to competition were not properly assessed, that bundling risks were mishandled, and that the impact on innovation was not properly examined.
“Not only cloud service providers, but hospitals, universities and municipal authorities all now face prohibitive bills and rigid long-term commitments that jeopardize the flexibility and affordability of their cloud infrastructure,” Mingorance wrote in July 2025, when CISPE announced it would take the Commission to court to cancel its approval.
If it is cancelled, the European Commission will have to reassess the agreement under current market conditions.
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