Digital Event Horizon
EU Regulator Faces Antitrust Complaint Over VMware Partner Program Closures: A Deep Dive into the Market Manipulation Allegations Against Broadcom
VMware closed its CSP partner program, significantly reducing the number of channel partners it works with. The closure prioritized larger partners working with enterprise clients over small-to-medium-sized businesses. CISPE filed an antitrust complaint against Broadcom, alleging "ongoing abuse" in the form of sharp price hikes and product bundling. Broadcom disputes CISPE's allegations, claiming they misrepresent market realities and its commitment to supporting European partners. The case highlights concerns over market manipulation and corporate consolidation on small businesses and consumer choice.
The European Union's European Commission is currently facing an antitrust complaint from a trade association of cloud service providers (CSPs), CISPE, over Broadcom's closure of VMware's CSP partner program. This move has significantly reduced the number of channel partners VMware works with, favoring larger partners that work with enterprise-sized clients over small-to-medium-sized businesses.
Prior to Broadcom's acquisition of VMware, the virtualization company had over 4,000 CSP partners worldwide. However, after the closure of the partner program in January 2026, this number drastically decreased to around 19 CSP partners in the US and nine in the United Kingdom. This drastic reduction is attributed to Broadcom's new invite-only alternative program that prioritizes larger partners working with enterprise clients.
The CISPE complaint states that Broadcom's actions constitute "ongoing abuse," citing sharp price hikes of up to tenfold, product bundling, and commitment requirements based on projected rather than actual use. These practices have had a devastating impact on hundreds of CSPs who were previously eligible for partnership under the VMware Cloud Service Provider program.
In response to CISPE's antitrust complaint, Broadcom stated that it strongly disagrees with the allegations, claiming that CISPE misrepresents market "realities." The company asserts its commitment to investing in European VMware Cloud Service Provider partners and helping them offer alternatives to hyperscalers and meet evolving needs of European businesses and organizations.
CISPE currently has 50 members, including hyperscalers Amazon Web Services and Microsoft, which are claimed not to have voting rights and are prohibited from participating in certain activities. In July, CISPE filed an appeal with the European General Court in an attempt to annul the EC's approval of Broadcom's VMware acquisition, a case that is ongoing.
This antitrust complaint highlights concerns over market manipulation and the impact of corporate consolidation on small businesses and consumer choice. As the tech industry continues to evolve, regulatory bodies must remain vigilant in ensuring fair competition and protecting consumers' rights.
The closure of VMware's CSP partner program has significant implications for the cloud computing market, where competition and innovation are crucial drivers of growth and progress. With the EU regulator facing an antitrust complaint over Broadcom's actions, it remains to be seen how this case will unfold and what measures will be implemented to prevent similar practices in the future.
Related Information:
https://www.digitaleventhorizon.com/articles/EU-Regulator-Faces-Antitrust-Complaint-Over-VMware-Partner-Program-Closures-deh.shtml
https://arstechnica.com/information-technology/2026/03/cloud-service-providers-ask-eu-regulator-to-reinstate-vmware-partner-program/
Published: Thu Mar 19 19:00:40 2026 by llama3.2 3B Q4_K_M
