EU probes Broadcom's $61B VMware buy on competition concerns

cloud technology
Credit: Pixabay/CC0 Public Domain

Computer chip and software maker Broadcom's $61 billion deal to buy cloud technology company VMware is facing scrutiny from European Union regulators who voiced concern Tuesday over potential threats to competition.

The in-depth investigation was opened due to Broadcom hardware that works together with VMware software, potentially locking out rival technology, the EU's executive Commission said.

That could result in "higher prices, and less innovation for , and ultimately consumers," the commission said.

The commission has until May 11 to decide on whether or not to clear the deal, which was announced last May, and would be one of the biggest acquisitions of the year.

Broadcom wants to establish a stronger foothold in the cloud computing market and VMware's technology allows to blend public cloud access with internal company networks. VMware has close relations with every major cloud company and provider, including Amazon, Google and Microsoft.

© 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Citation: EU probes Broadcom's $61B VMware buy on competition concerns (2022, December 20) retrieved 19 April 2024 from
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Chipmaker Broadcom to buy VMware for $61 bn


Feedback to editors