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Broadcom denied names of cloud providers backing VMware merger challenge
The EU General Court has allowed European cloud trade association CISPE to keep confidential the identities of members supporting its legal challenge to the European Commission’s approval of Broadcom’s acquisition of VMware. The ruling clears a procedural hurdle so the case can proceed, but it does not decide whether the Commission’s approval was lawful.
CISPE says the Commission failed to address risks to European cloud providers and their customers. It represents 48 providers and says fewer than 20 European providers remain authorised to offer VMware-based services, compared with more than 1,000 previously. The article also cites AT&T’s claim that Broadcom proposed a 1,050 per cent price increase, and says nine in ten surveyed VMware customers were considering alternatives; CISPE is seeking to have the Commission’s unconditional clearance annulled.
In short
- CISPE can keep supporting members’ identities confidential.
- The ruling lets its challenge proceed, but does not decide its merits.
- CISPE says authorised European VMware providers fell from over 1,000 to fewer than 20.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
CISPE’s case is that the Commission should have examined whether the merger could let Broadcom worsen access to VMware products or raise costs for cloud providers and their customers. The reported reduction in authorised European providers, alongside customer concerns about pricing and alternatives, gives reason to scrutinise whether unconditional approval adequately protected competition.
The case against
The Commission’s clearance can be defended on the grounds that a merger should be approved unless evidence shows it is likely to harm competition, rather than because some customers face higher prices or are considering switching. The reported figures and AT&T’s pricing claim raise concerns, but do not by themselves establish that the merger caused the changes or that the Commission’s assessment was unlawful; the court’s ruling on confidentiality decides neither point.
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