The Cloud Infrastructure Services Providers in Europe has filed a formal competition complaint with the European Commission Directorate-General for Competition against Broadcom, alleging that the US technology group is using unfair licensing practices to tighten its grip on Europe’s cloud infrastructure market. The move is the second time the industry body has taken action against a dominant US vendor, and it is urging regulators to impose immediate interim measures to prevent what it describes as irreversible damage.
At the heart of the dispute is Broadcom’s handling of VMware, the virtualization software provider it acquired and subsequently integrated into its portfolio. In January 2026, Broadcom announced the termination of VMware’s Cloud Service Provider programme in Europe, a decision that effectively excludes the vast majority of European cloud providers from reselling VMware products. According to CISPE, this follows a series of changes including steep price increases, mandatory bundling, upfront payment requirements and minimum purchase commitments based on projected rather than actual usage. Collectively, these changes have driven costs up by more than 1,000 percent for some providers.
Industry participants argue that the consequences are immediate and severe. By removing access to VMware’s software for most providers, Broadcom is said to be cutting off a critical input for cloud services, leaving customers with fewer choices and forcing some providers to consider exiting the market altogether. CISPE warns that the measures risk creating de facto monopolies in certain segments, with businesses becoming entirely dependent on Broadcom-controlled solutions.
The complaint calls for urgent intervention by EU competition authorities, including the suspension of the programme’s termination and the reinstatement of European cloud providers into the VMware ecosystem. It also seeks the revival of a previously discontinued “white label” scheme that allowed smaller providers to integrate VMware software into their offerings. In addition, CISPE is requesting safeguards against potential retaliation, alongside enforcement mechanisms such as fines to ensure compliance.
The concerns raised are not isolated. The German IT user association Voice e.V. filed a similar complaint in 2025, and multiple industry groups across Europe have voiced comparable fears. Many companies, however, remain reluctant to speak publicly due to their reliance on VMware technology and concerns about possible reprisals.
CISPE Secretary General Francisco Mingorance described Broadcom’s conduct as both damaging and unlawful, arguing that the company has compounded earlier pricing and licensing changes with a decisive move that threatens the viability of cloud providers and their customers. Industry representatives from Belgium, the Netherlands and Denmark echoed these concerns, pointing to widespread disruption, escalating costs and growing uncertainty across the sector.