The European Commission on Wednesday 12 April informed Broadcom of its preliminary conclusion that its proposed acquisition of VMware could restrict competition in the market for certain hardware components that are interoperable with VMware’s virtualisation software.
Broadcom is a computer hardware company that offers network interface cards, fibre channel host bus adapters (FC HBAs) and storage adapters, among other products.
VMware is the world’s leading provider of server virtualisation software for on-premises and private cloud environments.
In December 2022, the Commission opened an in-depth investigation into Broadcom’s acquisition of VMware (see EUROPE 13088/13).
Following its investigation, it is concerned that Broadcom is restricting competition in the global markets for FC HBAs and storage adapters, crowding out competitors’ hardware components by delaying or degrading their access to VMware server virtualisation software.
Broadcom is the leading supplier of FC HBAs and storage adapters. The markets are highly concentrated. If Broadcom’s competitors no longer have the ability to compete in these markets, the result could be higher prices, lower quality and slower innovation for business customers and consumers.
Broadcom now has the opportunity to reply to the statement of objections and to request an oral hearing. (Original version in French by Lionel Changeur)