Broadcom has been assigned a “Red/Critical” status by the European Cloud Competition Observatory (ECCO), raising serious concerns over its licensing practices in Europe.
According to ECCO’s latest report, Broadcom’s behavior post-its acquisition of VMware has cost European cloud providers significantly — with license fees surging up to 800%-1500% and new multi-year contracts locking in higher costs and fewer choices.
The association Cloud Infrastructure Service Providers in Europe (CISPE), which backs ECCO, says the company has largely ignored customer concerns about pricing, contract terms, and partner tiers. In response, CISPE has asked the European Commission to reconsider its prior approval of the VMware acquisition.
The fallout affects more than just providers: many smaller cloud firms report they can’t migrate away because of lock-in, limited support, or cost barriers — undermining competition across the European cloud ecosystem.
With Broadcom under regulatory spotlight, the company faces mounting pressure to reform its licensing model and engage meaningfully with European providers or risk deeper antitrust scrutiny and reputational damage.
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