Broadcom terminates VMware CSP program, triggering EU antitrust scrutiny

U.S. chipmaker Broadcom has terminated its VMware Cloud Service Provider (CSP) program in Europe.

“A trade association of cloud service providers (CSPs) filed an antitrust complaint today with the European Union’s European Commission (EC) over Broadcom’s shuttering of VMware’s CSP partner program this year”

Ars Technica

This action has triggered significant antitrust scrutiny from EU regulators.

Ars Technica

CISPE, representing nearly 50 European cloud providers, formally complained to the European Commission.

Microsoft and Amazon are associate members of CISPE.

The termination follows Broadcom's controversial acquisition of VMware in 2023.

CISPE had previously challenged this acquisition in court.

The complaint alleges Broadcom's decision excludes most European CSPs from selling VMware products.

CISPE claims this causes irreparable damage to cloud providers and their customers.

Before Broadcom acquired VMware, the virtualization company had over 4,000 CSP partners.

After the acquisition, VMware now reportedly has only 19 CSP partners in the US.

Global Banking & Finance Review®

VMware also has approximately nine CSP partners in the United Kingdom.

Broadcom implemented a requirement that CSP partners must operate at least 3,500 cores.

This requirement rendered hundreds of existing partners ineligible.

The changes effectively exclude smaller and medium-sized cloud service providers.

Broadcom replaced the open program with an invite-only alternative.

This new version favors larger partners working with enterprise-sized clients.

The European program termination was announced in January 2026.

Transactions are still being honored until March 31, 2026.

CISPE is demanding immediate intervention from European antitrust authorities.

“A trade association of cloud service providers (CSPs) filed an antitrust complaint today with the European Union’s European Commission (EC) over Broadcom’s shuttering of VMware’s CSP partner program this year”

Ars Technica

The group wants the European Commission to impose an interim measure.

This measure would immediately suspend Broadcom's termination of the VMware CSP program.

CISPE wants the program reopened with displaced partners readmitted.

Protection measures should prevent Broadcom from retaliating against challengers.

CISPE Secretary General Francisco Mingorance emphasized the urgency.

He stated that cloud providers and customers face irreparable damage.

CISPE's complaint builds on existing legal challenges against Broadcom.

The group previously argued the VMware acquisition was improperly approved.

Broadcom has defended its restructuring of VMware's CSP ecosystem.

The company claims its actions are necessary for a sustainable marketplace.

Global Banking & Finance Review®

Broadcom states it's investing significantly in European VMware CSP partners.

These investments help partners develop alternatives to hyperscalers.

Amazon Web Services, Microsoft, and Google Cloud are mentioned as hyperscalers.

Broadcom characterized CISPE as funded by hyperscalers.

The company says CISPE misrepresents market realities.

Broadcom's spokesperson emphasized the changes support ecosystem viability.

The company suggests the previous model was unsustainable.

Focusing on larger partners will benefit European cloud customers.

The European Commission confirmed receipt of CISPE's complaint.

“A trade association of cloud service providers (CSPs) filed an antitrust complaint today with the European Union’s European Commission (EC) over Broadcom’s shuttering of VMware’s CSP partner program this year”

Ars Technica

The Commission is assessing the matter through standard procedures.

Ars Technica

The acknowledgment signals the case is being taken seriously.

The timing is significant as transactions end March 31, 2026.

This period allows potential regulatory intervention.

The Commission may assess if Broadcom abused dominant position.

The assessment could examine EU competition law violations.

The context includes Broadcom's controversial VMware acquisition.

EU regulators may prevent what CISPE calls irreparable harm.