The Cispe in Europe defies the VMware agreement of $ 69 billion in Broadcom in the EU court
(Reuters) European Union judges could review the acquisition of $ 69 billion from the Cloud Computing Company of Chipmaker Broadcom, after an antitrust complaint has opposed the block of one of the largest takeover of the technological industry.
The cloud infrastructure service providers in Europe, or CISPE, have filed an official appeal before the European General Court requesting an cancellation of the European Agreement’s approval, the organization announced on Thursday.
Broadcom had completed the purchase of VMware in November 2023, after a meticulous examination of regulators, the world forced the company to delay the closing date three times.
The official summary of the European Commission for its approval decision was published in May, recognizing that the acquisition presented significant risks for competition.
“However, he did not impose conditions on Broadcom to prevent a concentration of domination or to mitigate the potential abuse of such a position,” said Cispe.
Cispe said that he had “constantly raised alarms” with the Broadcom’s Unbearable software license license practices, but no fundamental measure has been taken to take care of European cloud service providers or their customers.
The domination of VMware software in the virtualization market “means that the new unjust license terms applied by Broadcom affect almost all European organizations using Cloud technology,” said Francisco Mingorance, secretary general of Cispe.
A spokesman for the European Commission said he was ready to defend his decisions before the court.
“Broadcom does not agree with these allegations,” said a company spokesperson, adding that the agreement was approved after a “in-depth examination process, and we will confirm the commitments made to the Commission at that time”.
The agreement, one of the largest worldwide, announced in May 2022, was part of the efforts of the CEO of Broadcom Hock Tan to stimulate the software activity of the flea manufacturer.
(Report by Juby Babu in Mexico City, Gursimran Kaur in Bengaluru and Foo Yun Chee in Brussels; edition by Devika Syamnath)
