European VMware users have seen their bills rise sharply. A tenfold increase is common, with peaks of up to 15 times higher costs.
This is according to the European Cloud Competition Observatory (ECCO) in a new study. Due to a lack of alternatives, customers are being forced to pay. There has already been controversy about the explosive price increases: AT&T reportedly faced an annual price increase of 1,050 percent, took legal action, and found a solution.
Tip: Update: AT&T and Broadcom close to resolving legal dispute
Therefore, The ECCO has reassessed Broadcom’s VMware software licensing policy as ‘red’. The regulator states that despite new contracts, European cloud providers still face unfair terms that hinder competition and burden customers financially.
In its report, ECCO notes that since its first report in February 2025, Broadcom has succeeded in getting most members of the European cloud group CISPE to sign new license agreements. However, these contracts were often concluded under significant pressure, a lack of alternatives, abrupt contract terminations, and financial incentives such as discounts for long-term commitments.
ECCO argues that despite the transition to the new licensing framework, customers still experience significant financial burdens and operational disadvantages due to the imposed conditions. The regulator warns that Broadcom’s current financial model may violate EU competition rules.
New harmful practices
According to ECCO, Broadcom has implemented new changes to its partner program since the last report, adjusting the remuneration structure. These changes force partners to choose between being service providers or resellers. For many European cloud providers, who often fulfill both roles, this creates an additional barrier to competition.
In addition, Broadcom continues to sow uncertainty about its licensing program. In early May, the company published a blog post announcing that it was reviewing its incentives, requirements, and tiering structures. CISPE members fear that this will again lead to anti-competitive changes.
The report also points to a more aggressive legal approach by Broadcom. Cease and desist letters have been sent to holders of perpetual licenses, and a lawsuit has been filed against Siemens’ US operations. This fuels fears that more companies may face legal action if they do not accept the imposed conditions.
Broadcom shared the following statement with Techzine: “As a strategic partner with over 140 European Cloud Service Providers, of which more than 40 provide sovereign cloud services, Broadcom is working to advance the European Union’s sovereign cloud objectives and enable enterprises of all kinds to accelerate innovation, provide more choice, and address their most complex technology challenges. We welcome the opportunity to have a constructive dialogue with CISPE on how our products can help their European members be more competitive and innovative.”