EU probing $61 billion acquisition of software firm VMware by Broadcom
Summary
The has opened an in-depth investigation to assess the proposed acquisition of enterprise Cloud software company VMware by Broadcom. The Commission said it is particularly concerned that the "transaction would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMwares software". This, in turn, could lead to higher prices, lower quality and less innovation for business customers, and ultimately consumers. In September, the US Securities and Exchange Commission (SEC) charged VMware for misleading investors by obscuring the companys financial performance. VMware allegedly misled investors about its order backlog management practices, which enabled the company to push revenue into future quarters by delaying product deliveries to customers.
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