A trade body representing European cloud providers is continuing its fight against Broadcom’s acquisition of VMware.
Cloud Infrastructure Services Providers in Europe (CISPE) has made a formal statement to the General Court of the European Union, outlining its concerns.
The complaint argues that by approving the merger, the European Commission (EC) enabled Broadcom to monetize VMware’s pre-existing dominance in server virtualization software.
Moreover, CISPE argued the EC ignored the known risks presented by the deal, allowing the firm to exploit its dominant position and massively increase pricing.
In a statement, CISPE pointed out that Broadcom’s CEO publicly committed to lifting VMware’s standalone earnings before interest, taxes, depreciation, and amortization (EBITDA) from between $4.7 and $5.0 billion to $8.5 billion within three years of closing.
This increase of 60 to 80% in a market growing at only 5% to 8% annually couldn’t realistically come from organic growth or…
