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EU Cloud Players Want Europe to Annul Broadcom’s VMWare Buy
BELGIUM, JUL 24 – CISPE alleges Broadcom raised VMware prices and tightened licensing after a $61 billion acquisition, prompting an EU court appeal challenging the Commission's approval.
- On July 24, Cloud Infrastructure Services Providers in Europe filed an appeal with the EU General Court, seeking to annul its antitrust approval of Broadcom's VMware acquisition.
- Despite raising antitrust risks, the European Commission, according to CISPE, imposed no conditions, leaving commitments unable to curb Broadcom's market abuse.
- Since the VMware takeover, Broadcom imposed new licensing terms, raised prices up to tenfold, and terminated contracts on short notice.
- According to Francisco Mingorance, the dominance of VMware software affects almost every European organisation using cloud technology, noting that hospitals, universities and municipal authorities also face higher costs.
- The EU General Court will decide whether to review the acquisition approval, although the appeal process is lengthy and seldom overturns merger decisions.
14 Articles
14 Articles
Some holders of perpetual VMware licenses cannot currently download security patches, according to reports. The virtualization company informed them that they would receive the fixes at a later date. Broadcom manages as a matter of priority the companies secured to the formula of subscriptions to its services. The situation is part of a new trend in the software engineering industry made of scrapping perpetual licenses and adopting subscriptions.
CISPE seeks to annul Broadcom's VMware takeover
The Cloud Infrastructure Service Providers in Europe (CISPE) on Thursday filed an action for annulment in a bid to overturn the decision by the European Commission approving Broadcom’s acquisition of VMware. CISPE spokesperson Ben Maynard said that the appeal, which is now before the European General Court, “argues that the Commission did not properly test the licensing remedies offered by Broadcom and under-estimated the risk the deal poses to …
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