US chipmaker Broadcom’s acquisition of VMware could make servers more expensive, a British anti-trust watchdog has barked.
Britain’s Competition and Markets Authority (CMA) said it is refering the $61 billion deal to an in-depth inquiry unless its concerns were addressed.
For those who came in late, Broadcom agreed to buy the cloud computing and virtualisation company last year to diversify into enterprise software.
But the CMA is not having it saying that the deal could dampen innovation and drive up the cost of computer parts and software for servers.
CMA Executive Director David Stewart said: “Servers are a vital building block, functioning largely thanks to hardware products made by firms like Broadcom, working in unison with virtualisation software from firms like VMware.”
