Business IT users condemn Broadcom's market behaviour and call on European Commission for appropriate action

Business IT users condemn Broadcom's market behaviour and call on European Commission for appropriate action

2023-06-26 | NB | CIO verenigingen roepen Breton op tot actie EUCS voorstel brengt grote gevolgen voorThursday 28 March 2024

Today, CIO Platform Netherlands and its three European sister associations sent a joint letter to the European Commission following possible market-distorting behaviour by Broadcom since its acquisition of VMware.

Members of CIO Platform Netherlands and sister associations Beltug, Cigref and VOICE, have in recent months been confronted with the consequences of Broadcom's acquisition of VMware.

Collectively, as associations, we see and hear how negotiations and market behaviour of the major software vendor have deteriorated since its takeover by Broadcom. The lock-in position many business users find themselves in and the fundamental role VMware has in many value chains is taken advantage of.

Letter to the EC
In response to the negative consequences of the takeover, CIO Platform Netherlands, together with its sister associations, sent a letter to the European Commission. In the letter, we describe the perceived problems our members have been confronted with by Broadcom, which include sharp price increases, non-fulfilment of contractual agreements and the prohibition of resale of licences.

In addition, we call on the EC to take the necessary steps to resolve this market disruption and prevent similar harmful practices in the future. Moreover, we ask for the Commission's perspective on these practices.

We conclude that the precarious position in the market resulting from the particularly dependent position of the business user of IT vis-à-vis cloud software/product suppliers has not yet been sufficiently recognised. Because of dependency and lock-in, users are at the mercy of erratic unilateral decision-making by vendors. This damages trust in the market for digital products and services and limits European digital development and autonomy. This calls for an effective European response.

Read the letter here.

For questions and/or comments contact Ronald.

« Back

More news

Research on labour market shortages, help us reach 100 and help yourself!

2024-04-17 Human Capital Agenda ICT .jpgWednesday 15 May 2024 The shortage of qualified ICT talent is a brake on growth for many organisations. Together with other organisations, we are committed to tackling this challenge. We would like to ask for the help of our members by filling out a survey. full story

Quite some attention for VMware letter

2023-06-26 | NB | CIO verenigingen roepen Breton op tot actie EUCS voorstel brengt grote gevolgen voorFriday 05 April 2024 The four CIO associations' joint letter to the European Commission regarding the impact of Broadcom's acquisition of VMware on our members, has generated a lot of interest. full story

ICT experts, entrepreneurs and scientists shared their insights with State Secretary Alexandra van Huffelen.

ICT-experts, ondernemers en wetenschappers deelden hun inzichtenThursday 28 March 2024 27th of March, ICT experts, entrepreneurs and scientists shared their insights with State Secretary Alexandra van Huffelen and us on how to be less dependent on non-European countries for cloud services and to become stronger in this technology ourselves. full story

Business IT users condemn Broadcom's market behaviour and call on European Commission for appropriate action

2023-06-26 | NB | CIO verenigingen roepen Breton op tot actie EUCS voorstel brengt grote gevolgen voorThursday 28 March 2024 Today, CIO Platform Netherlands and its three European sister associations sent a joint letter to the European Commission following possible market-distorting behaviour by Broadcom since its acquisition of VMware. full story

View all news items through the archive

Close