A coalition of major cloud infrastructure providers has appealed to European Union regulators to restore VMware's partner program, which was suspended following Broadcom's acquisition of the virtualization software maker.
The group contends that Broadcom's characterization of the competitive landscape fails to reflect actual market conditions. According to the cloud providers, the current restrictions are creating unnecessary barriers and misrepresenting how the industry actually operates.
The partnership suspension became contentious after Broadcom completed its takeover of VMware, prompting concerns from EU authorities about potential anticompetitive behavior. The regulator subsequently required changes to VMware's channel partner strategy as a condition of approving the deal.
Cloud service providers argue that reinstating the program would restore fair access to VMware's technology stack and level the playing field for smaller competitors. Broadcom, meanwhile, maintains that its current approach aligns with regulatory requirements while protecting its business interests.
The dispute highlights ongoing tensions between technology acquisition deals and regulatory oversight in Europe, where authorities have grown increasingly scrutinous of consolidation in the cloud computing sector. The outcome could influence how future tech mergers are structured and what post-acquisition conditions regulators impose.
Source: Ars Technica Technology