The German IT user association VOICE has lodged a complaint with the EU Commission against Broadcom and VMware, alleging violations of competition law. VOICE claims that Broadcom is abusing its dominant position in the virtualization software market by significantly raising prices under the new subscription model they introduced following the acquisition of VMware.

Specifically, the association argues that Broadcom has unfairly increased prices, citing instances where companies have faced price hikes of several hundred percent. These increases stem from Broadcom’s shift from perpetual licensing to bundled products that are being sold in ways that restrict customer choice. VOICE mentions that customers often feel trapped into purchasing unnecessary products, as they can only buy complete bundles rather than individual items that fit their needs.

Robin Kaufmann, managing director of VOICE, criticized Broadcom for neglecting customer interests in favor of financial targets. The organization had initially sought to resolve the issue through direct dialogue with Broadcom but found this approach unproductive. Additionally, VOICE states that customers are pressured during contract negotiations, with Broadcom reportedly causing delays in responses to inquiries, putting clients on tight deadlines.

The VOICE representatives are particularly concerned about the impact of these practices on customers. They describe a situation where businesses are forced to buy more than they actually require, therefore incurring unnecessary costs. The group believes that Broadcom’s strategies are undermining fair competition within the software and cloud markets, prompting them to stand up against these unfair practices.

VOICE encourages any other affected customers to join the initiative against Broadcom’s policies, emphasizing their commitment to fairness in the industry.

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