The European Commission is worried Broadcom’s proposed $61 billion merger with VMware will be anti-competitive.
For those who came in late, the Commission’s watchdog started snuffling around the deal at the end of last year to assess the impact the acquisition may have on competition in the market for the supply of NICs, FC HBAs and storage adapters. Now, the Commission says it has some “reservations.”
“As a result of this in-depth investigation, the Commission is concerned that Broadcom may restrict competition in the global markets for the supply of FC HBAs and storage adapters by foreclosing competitors’ hardware by delaying or degrading their access to VMware’s server virtualisation software,” the watchdog said in a statement.