In the context of the VMware takeover and the change in business strategy, Broadcom’s contempt and brutality towards its customers are unprecedented in the recent history of the digital economy in Europe.

Among the problematic issues that have been raised are:

  • Steeply increased prices
  • Non-fulfilment of previous contractual agreements
  • Disallowing reselling of licences
  • Refusing to maintain security conditions for perpetual licenses
  • (Re)bundling of licences, leading to higher costs
  • A shake up of the ecosystem of VMware resellers and partners
  • A loss of knowledge

We have taken several actions in response to this situation:

  • At the end of March, the four CIO associations co-signed a letter to the European Commission to explain the consequences of the behaviour of the merger
  • In her response, Commissioner Vestager reaffirmed the Commission’s commitment to ensuring that the competition laws of the EU are ‘applied vigourously’
  • We have had several meetings with DG Competition
  • We have organised multiple meetings with our members to gather input and define common issues
  • On 17 June, a delegation of Beltug members met Henri van der Vaeren, Vice President Western Europe, and Philippe Cammaert, Belux Country Manager, both from Broadcom, for a discussion. Broadcom will provide a written breakdown of our conclusions and understandings from this meeting

We will continue to work with the different players involved.