Core Viewpoint - The Cloud Infrastructure Services Providers in Europe (CISPE) has legally challenged the European Commission's approval of Broadcom's acquisition of VMware, arguing that the merger poses significant risks that were not adequately assessed by the Commission [1][6]. Group 1: Merger Concerns - CISPE contends that Broadcom intends to exploit VMware's strong position in server virtualization software, which could lead to substantial price increases for customers [2]. - The organization highlights Broadcom's CEO's commitment to increasing VMware's standalone EBITDA from approximately $4.7–5 billion to $8.5 billion within three years post-merger, raising concerns about the feasibility of such growth [2][3]. - CISPE argues that the anticipated growth is unlikely to be achieved through organic market expansion or efficiencies alone, given the industry's annual growth rate of 5–8% [3]. Group 2: Financial Strategy - Broadcom financed the VMware acquisition by raising about $28.4 billion in new debt and assuming roughly $8 billion of VMware's existing debt, which may incentivize aggressive revenue extraction [4]. - The financial strategy could lead to intensified monetization practices, raising concerns about the impact on customers and market dynamics [4]. Group 3: Regulatory Oversight - CISPE claims that the European Commission ignored warnings from stakeholders regarding potential risks, including significant price hikes and reinforced contractual lock-ins, which have negatively impacted European cloud providers and their clients since the merger [5]. - The organization's secretary general criticized the Commission for its lack of oversight, suggesting that the approval effectively gave Broadcom a "blank cheque" to increase prices and impose multi-year subscriptions [6]. Group 4: Potential Implications - Should the General Court overturn the European Commission's approval, it could have significant implications for Broadcom's $61 billion investment in VMware [7].