EU Commission opens antitrust inquiry into Broadcom’s $61B VMware acquisition


< img src =",70"alt=" "> A month after the UK’s Competition Market’s Authority (CMA) announced it was examining Broadcom’s suggested acquisition of VMware, European antitrust regulators have launched thier own probe into the $61 billion deal.In the US, the Federal Trade Commission (FTC) is five months into a separate investigation of the deal.Meanwhile, the EU Commision stated in a declaration released on December 20 that it”is especially concerned that the transaction would permit Broadcom to restrict competition in the market for specific hardware elements which interoperate with VMware’s software application.”Elaborating on its issues, the Commission said the deal might affect the supply of network interface cards, Fibre Channel host-bus adapters, and storage adapters by degrading interoperability in between VMware software application and rivals’hardware to the advantage of its own hardware, leading to higher rates, lower quality and less innovation for organization clients and consumers.These concerns are not unproven, as Tracey Woo, senior expert for Forrester, kept in mind back in September that following the purchases of CA and Symantec, Broadcom raised rates, decreased support,

and stopped purchasing innovation.However, Broadcom President and CEO Hock Tan had actually already sought to ease these fears with VMware’s customers, composing in an October post that”the Broadcom company case for this transaction is postulated on concentrating on the business model, increasing R&D, and executing so that consumers see the value of the complete portfolio of ingenious item offerings– not on increasing rates.

“The Commission now has up until 11 Might 2023, 90 working days, to make a ruling. “We look forward to continuing our constructive work with the European Commission as part of their comprehensive evaluation procedure,”Broadcom said in a press statement. “We are making progress with our different regulatory filings worldwide, having received legal merger clearance in Brazil, South Africa, and Canada, and foreign financial investment control clearance in Germany, France, Austria, and Italy. “The business stated it continues

to expect that the deal will close in 2023.(This story has been updated with a statement from Broadcom and information about the US FTC’s inquiry into the proposed VMware purchase.)Copyright © 2022 IDG Communications, Inc. Source

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