Jump to content

VMware extraordinary price increase for licenses since acquisition by Broadcom

From Consumer Rights Wiki
Revision as of 17:22, 6 September 2025 by InTransparencyWeTrust (talk | contribs) (→Lawsuits: Start elaborating the european legal action taken)

On 22 November 2023, Broadcom Inc. completed the acquisition of VMware.[1] Perpetual licenses for the software were ended, and changed to a subscription based model.[2] This results in extraordinary price increases all over the world, as the software is used globally, which also starts a chain of legal action globally against Broadcom.

Background

Information about the product/service history to provide the necessary context surrounding the incident

Add your text below this box. Once this section is complete, delete this box by clicking on it and pressing backspace.


[Incident]

Change this section's title to be descriptive of the incident.

Impartial and complete description of the events, including actions taken by the company, and the timeline of the incident coming to the public's attention.

Add your text below this box. Once this section is complete, delete this box by clicking on it and pressing backspace.


[Company]'s response

If applicable, add the proposed solution to the issues by the company.

Add your text below this box. Once this section is complete, delete this box by clicking on it and pressing backspace.



Lawsuits

Dutch Ministry of Infrastructure (Rijkswaterstaat v. Broadcom Inc.)[3]

On Friday, June 27, 2025, the summary proceedings judge granted Rijkswaterstaats request. Broadcom must continue to provide us with support for a period of 2 years under the existing conditions and price.[4]

The judge ruled: ‘Unlike Broadcom et al. have stated, there was [thus] no question of free commercial negotiations between two large professional parties; one could say that RWS was in a bind. The judge ruled that RWS must be allowed to part ways with VMware/Broadcom and still receive support during that process. By failing to do so, Broadcom acts in violation of the care that is owed to RWS in social traffic.[4]

The ruling includes statements about earlier investigations. For instance, on July 22nd 2024, the European Commission stated that they would initiate investigations. They received complaints of the licensing model after Broadcom acquired VMware.[5][6]

European Cloud Providers

On Wednesday 30, July 30, 2025, the trade body for European Cloud providers CISPE started legal action against the European Commission.[7] The legal action focuses on the acquisition approval by the EU Commission; arguing the remedies taken were "irrelevant to the real threat".[7][8]

AT&T

Tesco

Siemens

Consumer response

Summary and key issues of prevailing sentiment from the consumers and commentators that can be documented via articles, emails to support, reviews and forum posts.

Add your text below this box. Once this section is complete, delete this box by clicking on it and pressing backspace.



References

  1. ↑ Yoo, Ji (2023-11-23). "Broadcom Completes Acquisition of VMware". Broadcom Inc. Archived from the original on 2023-12-01. Retrieved 2025-09-06.
  2. ↑ Walsworth, Rick (2024-01-22). "VMware End Of Availability of Perpetual Licensing and SaaS Services". VMware. Archived from the original on 2024-01-24. Retrieved 2025-09-06.
  3. ↑ "ECLI:NL:RBDHA:2025:11349". De Rechtspraak (in Nederlands). 2025-06-27. Retrieved 2025-09-06.
  4. ↑ 4.0 4.1 "Rijkswaterstaat wins summary proceedings against Broadcom over continuation of support". Openrijk. 2025-07-03. Archived from the original on 2025-09-06. Retrieved 2025-09-06.
  5. ↑ "Case AT.40924 - VMware software licensing - Request for information pursuant to Article 18(2) of Council Regulation (EC) No 1/2003" (PDF). European Commission. 2024-07-22. Retrieved 2025-09-06.
  6. ↑ Yun Chee, Foo (2024-04-25). "Broadcom questioned by EU over VMware licensing changes". Reuters. Retrieved 2025-09-06.{{cite news}}: CS1 maint: url-status (link)
  7. ↑ 7.0 7.1 Cojocaru, Alex (2025-07-30). "European Cloud Providers Drag Broadcom's VMware Deal into Court". Licenseware. Archived from the original on 2025-08-09. Retrieved 2025-09-06.
  8. ↑ "Mergers: Commission clears acquisition of VMware by Broadcom, subject to conditions". European Commission. 2023-07-12. Retrieved 2025-09-06.{{cite news}}: CS1 maint: url-status (link)
Retrieved from "https://consumerrights.wiki/index.php?title=VMware_extraordinary_price_increase_for_licenses_since_acquisition_by_Broadcom&oldid=23943"