A coalition of cloud service providers has lodged an antitrust grievance with the European Commission, targeting Broadcom’s decision to terminate VMware’s channel partner initiative. The complaint, submitted today, alleges that Broadcom’s actions since acquiring VMware have unfairly restricted market access for smaller operators.
Broadcom replaced VMware’s previous partner framework with an exclusive, invitation-based system. This new arrangement prioritizes large-scale partners serving enterprise clients, effectively sidelining small and medium-sized businesses. The shift has led to a sharp decline in the number of cloud service providers authorized to work with VMware’s virtualization technologies.
Under Broadcom’s revised criteria, cloud service providers must manage a minimum of 3,500 cores to qualify for partnership. This threshold has disqualified hundreds of previously eligible providers from continuing their VMware-related operations. The impact on the partner ecosystem has been substantial and rapid.
Prior to Broadcom’s acquisition, VMware maintained relationships with more than 4,000 cloud service provider partners globally, according to a February 2024 report from The Register. Current figures indicate a dramatic contraction: VMware now reportedly works with just 19 cloud service provider partners in the United States and approximately nine in the United Kingdom.
In January, Broadcom discontinued VMware’s cloud service provider program across Europe. This move directly prompted the antitrust complaint filed today by CISPE, the trade association representing cloud infrastructure service providers in Europe. The complaint seeks immediate regulatory intervention to address the program’s termination.
CISPE is urging the European Commission to implement interim measures that would compel Broadcom to reactivate the cloud service provider partner program. The association also calls for the reinstatement of partners displaced by the policy changes and protections against potential retaliation by Broadcom.
The complaint specifically requests that the European Commission prevent Broadcom from permanently shuttering the partner program. Broadcom is currently honoring existing transactions through March 31, but the future of the program remains uncertain beyond that date.
