European Regulators Challenge Broadcom’s VMware Strategy

European technology companies are facing unprecedented licensing cost increases following Broadcom’s acquisition of VMware, with some reporting fee hikes between 800% and 1500%. The dramatic price changes have triggered formal complaints to European Union authorities, who are now considering whether to reopen their investigation into the massive takeover.

A prominent European cloud computing organization has formally requested that the European Commission reconsider its initial approval of Broadcom’s VMware purchase. CISPE, representing cloud infrastructure providers across Europe, contends that Broadcom’s revised licensing structure effectively traps customers in long-term agreements with reduced flexibility and significantly higher expenses. According to their filing, technical dependencies and prohibitive switching costs make it virtually impossible for smaller Read more...