Cloud Infrastructure Services Providers in Europe (CISPE) has formally responded in court against the European Commission’s (EC) approval of Broadcom’s acquisition of VMware.

In its submission to the General Court of the European Union (EU), CISPE argues that the Commission failed to adequately assess risks associated with the merger.

The organisation contends that Broadcom plans to leverage VMware’s established position in server virtualisation software, potentially leading to significant price increases for customers.

CISPE highlighted a statement from Broadcom’s CEO, who had committed to elevating VMware’s standalone EBITDA from approximately $4.7–5bn to $8.5bn within three years following the merger.

The cloud trade group claims such growth is unlikely to be realised through organic market expansion or efficiencies alone, given the industry’s annual growth rate of 5–8%. Instead, the body suggested that Broadcom may resort to aggressive pricing and bundling strategies targeting VMware’s existing client base.

Broadcom finalised its acquisition of VMware in November 2023. The transaction, valued at around $61bn in cash and stock, was initially announced in May 2022.

CISPE points out that Broadcom financed this deal by raising about $28.4bn in new debt and assuming roughly $8bn of VMware’s existing debt. According to CISPE, this financial strategy might incentivise Broadcom to accelerate revenue extraction through intensified monetisation practices.

Despite warnings from stakeholders, including customers and industry groups, CISPE claims the Commission had ignored potential risks such as significant price hikes and reinforced contractual lock-ins. Since the merger, CISPE notes an increase in prices and mandatory multi-year subscriptions for VMware products has negatively affected European cloud providers and their clients.

CISPE secretary general Francisco Mingorence said: “The Commission looked at this merger through half-closed eyes and declared it safe. By rubber stamping the deal, Brussels handed Broadcom a blank cheque to raise prices, lock-in and squeeze customers.

“Broadcom has, predictably cashed this cheque with interest. This was a failure of oversight by the regulator with real world costs for Europe’s cloud sector and every organisation that depends upon it.”

CISPE’s challenge follows the EC’s defence of its 2023 approval of the Broadcom-VMware merger. The filing was submitted to the General Court on 3 December 2025 as part of Case T-503/25.

Should the General Court overturn the EC’s approval, it could have substantial implications for Broadcom’s $61bn investment.

A reversal would necessitate a reassessment of the merger under current market conditions, potentially leading to regulatory uncertainties for Broadcom’s stakeholders, said CISPE.

Additionally, licensing changes introduced post-merger could expose Broadcom to further litigation risks due to what CISPE describes as a flawed regulatory evaluation.

Separately, Broadcom reported its financial results for the fourth quarter ending on 2 November 2025. The company achieved revenue of $18bn for the quarter, marking a 28% increase from the previous year.

Its GAAP net income reached $8.52bn, reflecting a rise of 97% compared to the same quarter in the prior year.