Cloud service providers ask EU regulator to reinstate VMware partner program

A coalition of cloud service providers has lodged an antitrust complaint with the European Commission in response to Broadcom's recent decision to dismantle VMware’s partner program. This significant move comes after Broadcom’s acquisition of VMware, which has led to a dramatic reduction in the number of channel partners VMware collaborates with. The restructuring initiated by Broadcom included the termination of VMware’s existing partner program, which has now been replaced by a selective, invite-only model. This new framework heavily favors larger partners who handle enterprise clients, leaving smaller businesses at a disadvantage. As a result, the number of CSP partners associated with VMware has plummeted. Previously, VMware boasted over 4,000 CSP partners, as reported by The Register in February 2024. However, the latest figures indicate that VMware now partners with just 19 CSPs in the United States and around nine in the United Kingdom. The changes were solidified when Broadcom ended VMware's CSP program in Europe earlier this year, spurring the antitrust complaint filed today by CISPE. The complaint urges the European Commission to intervene and prevent Broadcom from permanently closing the program, which is still processing transactions until March 31. Furthermore, CISPE is requesting that the Commission enforces interim measures to reinstate the previous CSP partnership program and protect the interests of the displaced partners from any retaliatory actions by Broadcom.