That would give the company’s chips an unfair edge. In particular, the regulator believes Broadcom may prevent rivals from making their NICs and storage adapters compatible with VMware software. The CMA is concerned that Broadcom’s proposed acquisition of the company could harm the competition. Companies such as Broadcom that develop NICs and storage adapters make their chips compatible with VMware’s software because it’s widely used in the enterprise.
VMware, in turn, sells software for managing data center infrastructure. Broadcom’s adapters facilitate the movement of data between servers and storage equipment. “It’s now up to Broadcom to respond to our concerns or face a more in-depth investigation.”īroadcom is a major supplier of network interface cards, or NICs, chips that are used to connect servers to data center networks. “We are concerned this deal could allow Broadcom to cut out competitors from the supply of hardware components to the server market and lead to less innovation at a time when most firms want fast, responsive, and affordable IT systems,” said CMA Executive Director David Stewart. The development follows the conclusion of an inquiry into the deal that the CMA launched last November.
The Competition and Markets Authority, or CMA, publicized its position today. The U.K.’s antitrust regulator is concerned that Broadcom Inc.’s proposed $61 billion acquisition of VMware Inc.
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