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Computer chip and software maker Broadcom’s $61 billion deal to buy cloud technology firm VMware is facing scrutiny from European Union regulators, who have presented expressed concern Tuesday about potential threats to competition.
The EU’s executive committee said the in-depth investigation was opened because Broadcom’s hardware worked in conjunction with VMware software, potentially locking down rival technology.
That could lead to “higher prices, lower quality and less innovation for business customersand ultimately the consumer,” the commission said.
The committee has until May 11 to decide whether to delete the deal, which was announced last May and will 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 enables big corporation to combine public cloud access with the corporate intranet. VMware has close relationships with every major cloud company and provider, including Amazon, Google, and Microsoft.
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