UK CMA gives Broadcom/VMware probe tight deadlines
Summary
The CMA on Friday updated its investigation of the deal with publication of an administrative timetable and an issues statement. The CMAs first look at the deal considered three "theories of harm" – namely: • Foreclosure of hardware competitors through leveraging VMwares position in server virtualization software; • Foreclosure of server virtualization software competitors through leveraging Broadcoms position in FC HBAs and storage adapters. But that still leaves plenty for the CMA to consider, and it intends to seek evidence on "whether degrading (or preventing) interoperability between VMware server virtualization software and the products supplied by Broadcoms hardware rivals would harm rivals competitiveness due to the importance of interoperability." • VMware nods to containerization with tweaks to virtual desktops and apps • Watchdog: Broadcom buy of VMware may be bad for competition Further speculation about the deal has been provoked by the US Federal Trade Commission (FTC), which is also considering the deal, listing two meetings on April 25 and May 1. If that happens, it will leave Broadcoms strategy of building a giant enterprise software business in tatters and force VMware to go it alone.
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