Broadcom-VMware Update (EU investigation)
The European Commission has begun its in-depth investigation into Broadcom’s proposed $61 billion acquisition of VMware, addressing a number of competition concerns.
The Commission is particularly concerned that the transaction would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware’s software.
The Commission is the competition branch of the European Union.
In addition, the Commission will examine whether Broadcom may hinder the development of SmartNICs by other providers. In 2020, VMware launched Project Monterey with three SmartNICs sellers, Nvidia, Intel and AMD Pensando.
Broadcom may decrease VMware’s involvement in Project Monterey to protect its own NICs revenues. This could hamper innovation to the detriment of customers, the Commission said.
Learn more about Broadcom’s response to the Commission.
