European Cloud Lobbying Group Demands EU Action Against Broadcom's VMware Changes
The European cloud infrastructure landscape is facing a significant upheaval as the Cloud Infrastructure Services Providers (CISPE) trade body has formally requested that EU antitrust regulators intervene immediately to prevent U.S. chipmaker Broadcom from terminating its VMware Cloud Service Provider (VCSP) program across Europe. This urgent appeal represents a major escalation in the ongoing conflict between smaller European cloud providers and the American technology giant.
CISPE's Emergency Request to European Commission
CISPE, which represents nearly 50 cloud infrastructure service providers across Europe and counts Microsoft and Amazon as associate members, has submitted a formal request to the European Commission for interim measures. The organization is specifically asking the EU's competition watchdog to:
- Immediately suspend Broadcom's termination of the VCSP partner program
- Allow excluded partners to be readmitted to the program
- Implement protection measures against potential retaliation from Broadcom
"Both cloud providers and their customers are being irreparably damaged by Broadcom's unfair actions," stated CISPE Secretary General Francisco Mingorance in an official statement. He emphasized the urgent need for regulatory intervention, describing Broadcom's actions as applying the "coup de grâce" to European cloud providers.
The VMware Program Termination and Its Consequences
Broadcom officially closed its VMware Cloud Service Provider program in January 2026, with all related transactions required to be completed by March 31. Following this deadline, only a select group of suppliers will retain authorization to sell VMware subscriptions—either as standalone products or as part of broader service packages.
CISPE claims this decision effectively eliminates hundreds of businesses from the VMware ecosystem across Europe. For many smaller cloud providers whose operations were built around VMware technology, the loss of VCSP status represents what the organization calls a "death sentence" for their market viability. Affected companies now face the difficult choice of either handing their customers over to authorized competitors or undertaking costly migrations to alternative platforms.
Background of the Broadcom-VMware Acquisition
This latest conflict follows Broadcom's $69 billion acquisition of VMware, which was completed in October 2023 after receiving European Commission approval. CISPE has been a vocal critic of this deal, having sued the European Commission in 2025 for what it claims was inadequate examination of the acquisition's competitive implications.
According to CISPE, since Broadcom took control of VMware, prices have increased tenfold, with the company demanding upfront payments, bundling products regardless of customer needs, and establishing minimum commitments based on potential rather than actual consumption.
Broadcom's Response and Market Position
Broadcom has strongly rejected CISPE's allegations, with a company spokesperson stating: "Broadcom strongly disagrees with the allegations by CISPE, an organization funded by hyperscalers, which misrepresent the realities of the market." The company maintains that it is making significant investments in European VMware Cloud Service Provider partners to help them offer alternatives to hyperscalers—the massive cloud service providers like Amazon Web Services, Microsoft, and Google Cloud.
The spokesperson emphasized that Broadcom's approach is designed to strengthen the competitive position of European cloud providers against these dominant hyperscalers, rather than undermine them as CISPE claims.
Broader Implications for European Cloud Competition
This dispute highlights the ongoing tension in Europe's technology sector between established American tech giants and smaller European competitors. The outcome of CISPE's request for interim measures could have significant implications for cloud competition across the continent, potentially setting precedents for how EU antitrust regulators approach similar cases involving major technology acquisitions and subsequent market changes.
As the March 31 deadline approaches, European cloud providers and their customers await the European Commission's response to what CISPE describes as an urgent situation requiring immediate regulatory intervention to preserve market competition and customer choice in Europe's cloud infrastructure sector.
