(News Bulletin 247) – The European Commission announces that it has cleared the proposed acquisition of VMware by Broadcom, under the EU Merger Regulation.
Approval is, however, conditional on full compliance with the undertakings offered by Broadcom.
Indeed, after an in-depth investigation into the transaction, the Commission considered that this project would harm competition in the global market for the supply of Fiber Channel host bus adapters (‘FC HBAs’).
In response, Broadcom had offered various access and interoperability commitments to Marvell (its main competitor) and any potential future entrants.
Broadcom notably offered guaranteed access to application programming interfaces and guaranteed access to source code for all current and future Broadcom FC HBA drivers via an irrevocable open source license.
In addition, Broadcom has committed to implementing an organizational separation between the team working on Broadcom FC HBAs and the team responsible for third-party certification and technical support.
The Commission concluded that the proposed acquisition, as modified by the commitments, would no longer raise competition concerns and would maintain competition in the FC HBA market.
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