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Business others eU to investigate Broadcom's planned $61B acquisition of VMware

EU to investigate Broadcom's planned $61B acquisition of VMware


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 EU to investigate Broadcom

The European Union's antitrust watchdog said that it would look into Broadcom Inc.'s plans to buy VMware Inc. for $61 billion.

The European Commission, which is in charge of making sure antitrust laws are followed in the EU, was worried that the deal would let Broadcom make it harder for other companies to sell certain hardware components.

Other regulators have also expressed interest in the transaction. The Competition and Markets Authority of the United Kingdom has stated that it is investigating the proposed acquisition. The U.S. Federal Trade Commission has requested information from the companies regarding the transaction, citing a prior regulatory filing.

Broadcom said it was excited to keep working with European regulators as part of their review process.

VMware said that the merger would give customers of both companies more options and freedom.

In a statement released on Tuesday, the EU said that its first look at the agreement made them worried about hardware parts like network interface cards and storage adapters.

According to the commission, Broadcom could make it more difficult for VMware's software to interoperate with rival hardware. It was also said that the company could keep competitors out by making it harder for them to use VMware's software or by stopping them from using it.

The commission said it would also look into whether Broadcom got in the way of other companies making smart network interface cards or started bundling its software with VMware's software in a way that made customers' choices more limited.


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