VMware reportedly probed by Japanese anti-monopoly cops

Broadcom's software bundles under scrutiny after perhaps irking Fujitsu

Updated Japan's Fair Trade Commission, the nation's anti-monopoly agency, has reportedly commenced an investigation into VMware's software licensing practices.

Several Japanese media outlets today reported that on Wednesday authorities visited 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.

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.

The investigation has prima facie substance as Broadcom now only sells bundles of VMware software and has made big changes to its cloud service provider program that saw some members excluded.

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.

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.

Japan's reported actions appear to be the first regulatory consideration of the changes Broadcom brought to Virtzilla.

The chips-and-code giant is also being challenged in court by comms giant AT&T.

Broadcom recently told investors that VMware customers are signing up for its bundles at a rate that has seen revenue from the virtualization giant grow faster than expected.

The Register has sought comment from Broadcom and the Trade Commission, and will update this story if we receive substantial information. ®

Updated at 21:30 UTC September 25

A Broadcom spokesperson told The Register "“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.”