Broadcom and VMware's $61 Billion Merger Under Fire for Anti-Competitive Concerns
Broadcom and VMware's $61 Bi...
Subscribe to Newsletter

Broadcom and VMware's $61 Billion Merger Under Fire for Anti-Competitive Concerns

13 April 2023
2 min.
Broadcom and VMware's $61 Billion Merger Under Fire for Anti-Competitive Concerns

Broadcom's VMware takeover

The $61 billion acquisition of VMware by Broadcom is currently under investigation by the European Commission and the Competition and Markets Authority in the UK. The deal has raised concerns about its potential impact on competition and innovation within the market for networking hardware components, prompting regulatory scrutiny.

The Commission is expressing concerns regarding the potential merger between Broadcom and VMware. The merger may grant Broadcom the ability to restrict or decelerate the accessibility of VMware's hypervisor stack to suppliers of NICs, fiber channel host bus adapters, and network storage adapters that operate with the software. This may create an anti-competitive environment where Broadcom's competitors struggle to compete in the market. As a result, it may lead to increased prices, inferior quality, and limited innovation for both business customers and consumers.

The networking hardware industry is dominated by a few major players, with Broadcom at the forefront. If Broadcom were to acquire VMware, they could potentially limit the use of its virtualization software on hardware from other manufacturers, giving them a competitive advantage over rivals. Also, this move could compel companies to opt for Broadcom's networking products over competing brands, resulting in an unfavorable market for competitors.

Broadcom's planned merger with VMware is currently under scrutiny by regulatory bodies in both the UK and US. The Competition and Markets Authority in the UK and the Federal Trade Commission in the US have expressed concerns similar to those raised by the European Commission. However, the merger has been approved in Australia, Brazil, Canada, and South Africa. VMware's CEO, Rangarajan Raghuram, remains optimistic that the merger will be finalized in the fall, despite ongoing investigations.

Nonetheless, the investigation is still ongoing, and both corporations have the opportunity to submit responses and request an oral hearing before the commission makes its final decision on June 21. The UK's CMA has until September 12 to make its decision.

Persons1 and Companies4 in the news

Chief Executive Officer of VMware
1 place
2 place
4 place
Rating companies
14 Mention
14 Mention
Walt Disney Company
12 Mention
11 Mention
JP Morgan Chase
10 Mention
10 Mention
Ford Motor Company
10 Mention


News from is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York. news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year