CMA to probe Broadcom and VMware merger more deeply

This was based on the CMA's notion that post-merger, Broadcom might be able to use VMware's dominant position in server virtualization to restrict compatibility with its platform to servers using Broadcom's silicon components. Such components include Ethernet and Fibre Channel network adapters and switches.: that Broadcom may hike the cost of licenses in order to drive profits, and slow development of updates and technical enhancements for products.

In the same statement sent to us last week, VMware said:"Broadcom's acquisition of VMware continues to move forward as expected, including with respect to the regulatory review process taking place in the UK and those across multiple other jurisdictions. VMware will continue to respond to all regulatory inquiries, as appropriate, and we continue to expect the deal to close in Broadcom’s fiscal year 2023.

"We will address the concerns raised and demonstrate that the transaction enhances competition and benefits businesses and consumers through increased quality, innovation and choice," the spokesperson said. In the US, the Federal Trade Commission is also looking into the deal, but has yet to disclose a timeline for its decision.suggested that FTC staff were having detailed discussions with industry participants over worries about the merger.

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