With the Phase 2 investigation now underway, the CMA has set a deadline of Sept. “Broadcom informed the CMA that it would not offer such undertakings to the CMA,” the authority said in a statement today. Last week, the CMA gave Broadcom five days to provide proposals to address these concerns. If that happens, it could hurt innovation in the server ecosystem. The CMA said it’s worried that Broadcom would therefore be privy to sensitive product data that rival server makers share with VMware. Through these collaborations, they sometimes share sensitive information about new products with VMware. In addition, the CMA pointed out that Broadcom’s competitors in the server market often collaborate with VMware to ensure their new products are compatible with its software. These components include Ethernet and Fiber Channel switches and network adapters. The CMA said it is worried that, post-merger, Broadcom might try to leverage VMware’s dominance of the server virtualization industry to restrict compatibility with its software only to servers that rely on Broadcom’s silicon components. The Phase 1 investigation raised concerns that the merger could result in higher prices and hinder innovation in the server market. The Competition and Markets Authority said today it is launching a Phase 2 investigation into the pending buyout, after Broadcom failed to offer a response to concerns it raised over the merger.īroadcom announced its pending acquisition of VMware last May, and the CMA announced it was opening a preliminary probe into the deal later that year. The U.K.’s antitrust regulator said today it will launch a deeper investigation into Broadcom Inc.’s proposed $61 billion acquisition of VMware Inc., a move that seemingly dashes any prospect of the merger being completed with minimal fuss.
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