The European Commission is concerned enough about Broadcom’s $61 billion purchase of VMware to investigate further.
Apparently, the commission is concerned that Broadcom will have such monopoly power after the deal it could turn off rivals’ access to virtualisation.
Margrethe Vestager, European Commission executive vice president in charge of competition policy said that after the merger, Broadcom could prevent its hardware rivals to interoperate with VMware’s server virtualisation software.
“This would lead to higher prices, lower quality and less innovation for customers and consumers.”
In a statement issued through a spokesperson, Broadcom said it was confident that regulators will conclude the deal will “accelerate innovation and expand choice.”
The company said it expects the deal to close before Nov. 1, 2023.
