Broadcom faces EU antitrust probe into $61 bln VMware deal, sources
Summary
U.S. chipmaker Broadcom is set to face a setback in its $61 billion bid for cloud computing company VMware with EU antitrust regulators poised to open a full-scale investigation into the deal, people familiar with the matter said. The proposed acquisition, the second biggest globally so far this year, underlines Broadcoms attempt to diversify its business into enterprise software but comes as regulators worldwide ramp up scrutiny of deals by Big Tech. Broadcom had been banking on early EU approval of the deal by pointing to competition from Amazon, Microsoft and Google in the cloud computing market, people familiar with the matter told Reuters in October. EU officials usually convey their concerns during such meetings and if companies fail to convince them of the merits of their takeovers, they then launch a full-scale four-month long investigation once their preliminary review of the deal ends. Beltug, a Belgian association of CIOs & Digital Technology leaders, and its counterparts Frances Cigref, CIO platform Nederland and VOICE Germany have previously voiced their fears that the deal could lead to drastic price hikes and tougher commercial practices against customers.
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