VMware investigated by Japanese antimonopoly agency: reports • The Register

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</div> <article> <div id=top-col-story> <div class="header_left"> <div class="cat_header"> <h4 class="dcl"> <a href="/software/virtualization/" aria-label="Virtualization">Virtualization</a> </h4> </div> <div class="comments_wrap mobile_only"> <a class="comment_count" aria-label="Read comments on this article, currently there are 6 comments" title="View comments on this article" href="https://forums.theregister.com/forum/all/2024/09/25/japan_vmware_broadcom_monopoly_investigation/"> <strong aria-hidden="true">6</strong> <img aria-hidden="true" width="18" height="16" alt="comment bubble on white" src="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.png" srcset="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.svg"> </a> </div> </div> <div class="header_right"> <h1>VMware reportedly probed by Japanese anti-monopoly cops</h1> </div> <div class="header_left"> <div class="comments_wrap desktop_only"> <a class="comment_count" aria-label="Read comments on this article, currently there are 6 comments" title="View comments on this article" href="https://forums.theregister.com/forum/all/2024/09/25/japan_vmware_broadcom_monopoly_investigation/"> <strong aria-hidden="true">6</strong> <img aria-hidden="true" width="18" height="16" alt="comment bubble on white" src="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.png" srcset="/design_picker/f5daacc84b9722c1e31ba85f836c37e4ad993fc4/graphics/icons/bubble_comment_white.svg"> </a> </div> </div> <div class="header_right"> <h2>Broadcom's software bundles under scrutiny after perhaps irking Fujitsu</h2> <div class="byline_and_dateline_and_share_and_comments"> <div class="byline_wrap"> <img class="vulture_icon" src="/design_picker/d518b499f8a6e2c65d4d8c49aca8299d54b03012/graphics/icon/vulture_red.svg" alt="icon"> <a class="byline" href="/Author/Simon-Sharwood" title="Read more by this author"> Simon Sharwood </a> </div> <div class="dateline_wrap"> <span class="dateline"> Wed 25 Sep 2024 <span class="slashes"> // </span> 06:40 UTC </span> </div> </div> </div> </div> <div id=main-col> <div id="article-wrapper" class="article_wrap"> <div class="left_col"> <div class="floating_bar"> <div class="sharing_widget_story_desktop uses_overlay"> <button class="top_blob" aria-label="Share this story" title="Share this story"> <img width="25" height="25" src="/design_picker/d2e337b97204af4aa34dda04c4e5d56d954b216f/graphics/icons/social_share_icon.svg" alt=""> </button> <div class="sharing_widget_overlay" id="sharing_widget_overlay_2"> <div class="sharing_box"> <a data-social="reddit" href="https://www.reddit.com/submit?url=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dreddit&title=VMware%20reportedly%20probed%20by%20Japanese%20anti-monopoly%20cops" target="_blank"> </a> <a data-social="twitter" class="twit" href="https://twitter.com/intent/tweet?text=VMware%20reportedly%20probed%20by%20Japanese%20anti-monopoly%20cops&url=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dtwitter&via=theregister" target="_blank"> </a> <a data-social="facebook" class="faceb_dialog" href="https://www.facebook.com/dialog/feed?app_id=1404095453459035&display=popup&link=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dfacebook" target="_blank"> </a> <br class="hide_after_sm"> <a data-social="linkedin" class="linkedin_social" href="https://www.linkedin.com/shareArticle?mini=true&url=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dlinkedin&title=VMware%20reportedly%20probed%20by%20Japanese%20anti-monopoly%20cops&summary=Broadcom%27s%20software%20bundles%20under%20scrutiny%20after%20perhaps%20irking%20Fujitsu" target="_blank"> </a> <a data-social="whatsapp" href="https://api.whatsapp.com/send?text=https://www.theregister.com/2024/09/25/japan_vmware_broadcom_monopoly_investigation/%3futm_medium%3dshare%26utm_content%3darticle%26utm_source%3dwhatsapp" target="_blank"> </a> </div> </div> </div> </div> <div class="promo_advert"> </div> </div> <div class="centre_col"> <div id="article"> <div id="body"> <p><span class="label">Updated</span> Japan's Fair Trade Commission, the nation's anti-monopoly agency, has reportedly commenced an investigation into VMware's software licensing practices.</p> <p>Several Japanese media outlets today <a target="_blank" rel="nofollow" href="https://www3.nhk.or.jp/news/html/20240925/k10014591481000.html">reported</a> that on Wednesday <a target="_blank" rel="nofollow" href="https://news.yahoo.co.jp/articles/c3d432b3b430ba2ec287f2441a3a4742844b8eac">authorities visited</a> the Tokyo office of VMware's owner, Broadcom, to seek evidence of whether the giant corp has compelled customers to purchase unnecessary software bundled with other products.</p> <p>The reports mention cloud service providers being affected by Broadcom's license changes, and Nippon Steel Solutions and Fujitsu as customers caught up in the matter.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="condor" data-xsm=",fluid,mpu," data-sm=",fluid,mpu," data-md=",fluid,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0" alt=""> </a> </noscript> </div> <p>The investigation has <em>prima facie</em> substance as Broadcom now only sells bundles of VMware software and has made <a target="_blank" href="https://www.theregister.com/2024/01/10/broadcom_ends_vmware_partner_program/">big changes</a> to its cloud service provider program that saw some members excluded.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="falcon" data-xmd=",fluid,mpu,leaderboard," data-lg=",fluid,mpu,leaderboard," data-xlg=",fluid,billboard,superleaderboard,mpu,leaderboard," data-xxlg=",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> <div class="adun_eagle_desktop_story_wrapper"> <div aria-hidden="true" class="adun" data-pos="mid" data-raptor="eagle" data-xxlg=",mpu,dmpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> </div> <p>Broadcom's bundles include software and support subscriptions, and it insists the price is lower than the combined list prices VMware charged for the individual products that make up the bundle. Customers and analysts, however, argue the bundles mean customers pay more than was the case under pre-acquisition VMware's pricing scheme. The Japanese reports claim prices have risen tenfold, or more. Broadcom argues its bundles quickly pay for themselves.</p> <ul class="listinks"> <li><a href="https://www.theregister.com/2024/04/22/google_yahoo_japan/">Tokyo wags finger at Google for blocking Yahoo Japan<i>!</i> from using ad tech</a></li> <li><a href="https://www.theregister.com/2024/08/29/vmware_explore_strategy_analysis/">Broadcom has brought VMware down to earth and that’s welcome</a></li> <li><a href="https://www.theregister.com/2024/06/13/japan_smartphone_software_law/">Japan forces Apple and Google to allow third-party app stores and payments</a></li> <li><a href="https://www.theregister.com/2024/05/07/broadcom_vmware_aws/">VMware waves goodbye to AWS middleman as Broadcom takes the reins</a></li> </ul> <p>Trade group Cloud Infrastructure Services Providers in Europe (CISPE) has lobbied for a European Union investigation into Broadcom's practices – so far without evidence of success.</p> <p>Japan's reported actions appear to be the first regulatory consideration of the changes Broadcom brought to Virtzilla.</p> <p>The chips-and-code giant is also being <a target="_blank" href="https://www.theregister.com/2024/09/23/att_vmware_quit_claim_broadcom/">challenged in court by comms giant AT&T</a>.</p> <div aria-hidden="true" class="adun" data-pos="top" data-raptor="falcon" data-xsm=",fluid,mpu," data-sm=",fluid,mpu," data-md=",fluid,mpu,"> <noscript> <a href="https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0" target="_blank"> <img src="https://pubads.g.doubleclick.net/gampad/ad?co=1&iu=/6978/reg_software/virtualization&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z7iZR1T_NBH7OIo9fHsHEQAAAcU&t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0" alt=""> </a> </noscript> </div> <p>Broadcom recently <a target="_blank" href="https://www.theregister.com/2024/09/06/broadcom_q3_2024/">told investors</a> that VMware customers are signing up for its bundles at a rate that has seen revenue from the virtualization giant grow faster than expected.</p> <p><em>The Register</em> has sought comment from Broadcom and the Trade Commission, and will update this story if we receive substantial information. ®</p> <h3 class="crosshead">Updated at 21:30 UTC September 25</h3> <p>A Broadcom spokesperson told <em>The Register</em> "“Broadcom will work constructively and fully with the JFTC to resolve any issues and concerns; we do not have further comments at this early stage.”</p> <div class="wptl btm"> <noscript><strong>Get our</strong> <a href="https://whitepapers.theregister.com/" style="text-transform:uppercase">Tech Resources</a></noscript> </div> </div> <div class="article_body_btm mobile_only"> <div class="sharing_widget_story_desktop uses_overlay"> <button class="top_blob" aria-label="Share this 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