European Cloud Providers Seek Annulment of Broadcom’s VMware Acquisition in Landmark Court Challenge
Brussels, Belgium – July 24, 2025 – A consortium of European cloud and IT infrastructure providers has formally initiated legal proceedings in a bid to annul Broadcom’s acquisition of VMware, a monumental $61 billion deal that closed in late 2023. The group, represented by CISPE (Cloud Infrastructure Services Providers in Europe), argues that the acquisition has significantly distorted competition within the European cloud market, leading to detrimental impacts on businesses and consumers across the continent.
The legal action, filed in a European court, centers on allegations that Broadcom has engaged in anti-competitive practices since taking control of VMware. CISPE, which comprises over 300 independent cloud infrastructure and services companies operating within the European Union, contends that Broadcom’s subsequent strategic decisions have demonstrably harmed market diversity and innovation.
Specifically, the plaintiffs point to a series of changes implemented by Broadcom that they claim unfairly disadvantage competitors and elevate the company’s market position. These include significant price hikes for VMware’s software, altered licensing terms that favor Broadcom’s own product ecosystem, and the bundling of essential VMware technologies with Broadcom solutions. These actions, CISPE asserts, effectively create an unlevel playing field, forcing customers into restrictive vendor lock-in and stifling the ability of smaller, independent cloud providers to compete.
“The acquisition of VMware by Broadcom was a significant moment for the tech industry, but it has unfortunately led to a concentration of power that is detrimental to the European market,” stated a spokesperson for CISPE. “Our members are vital to the digital infrastructure of countless European businesses. The changes implemented post-acquisition have made it exceedingly difficult for many to continue operating competitively and to offer the choice and flexibility that our customers expect and deserve.”
CISPE’s legal team aims to demonstrate that Broadcom’s conduct violates European Union antitrust laws and regulations designed to protect fair competition. The organization is seeking a comprehensive review of the acquisition and the implementation of measures to restore a competitive environment. While the specific remedies sought are still being detailed, the ultimate goal is the annulment of the acquisition, or at the very least, the imposition of significant conditions to mitigate the alleged anti-competitive effects.
The legal challenge represents a significant escalation of concerns that have been circulating within the European tech sector since the Broadcom-VMware deal was first announced. Regulatory bodies across the globe, including the European Commission, had scrutinized the acquisition, eventually granting approval with certain concessions from Broadcom. However, CISPE believes these concessions were insufficient to address the long-term competitive implications.
The outcome of this legal battle could have far-reaching consequences for the broader technology landscape, particularly concerning mergers and acquisitions involving dominant software vendors and their impact on downstream markets. It underscores the ongoing vigilance of European authorities and industry players in ensuring a healthy and competitive digital economy. Businesses and technology providers across Europe will be watching this case closely as it unfolds.
EU cloud gang challenges Broadcom’s $61B VMWare buy in court
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