EU antitrust have opened a comprehensive investigation to assess U.S. chipmaker Broadcom’s $61 billion bid for enterprise Cloud software company VMware.
The Commission said in one of the statements that it is majorly concerned about, “The transaction would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware’s software.” This move could result in higher prices, lower quality, and less innovation for business customers and ultimately consumers.
The Commission further said,” Broadcom may start bundling VMware’s virtualisation software with its own software (namely mainframe and security software) and no longer offer VMware’s virtualisation software as a stand-alone product reducing choice and potentially foreclosing rival software providers.”
The Commission now has a time period of 90 days, until May 11, 2023, in order to make the final decision!