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LONDON (AP) — Laptop chip and software program maker Broadcom’s $61 billion deal to purchase cloud expertise firm VMware is going through scrutiny from European Union regulators who voiced concern Tuesday over potential threats to competitors.
The in-depth investigation was opened on account of Broadcom {hardware} that works along with VMware software program, probably locking out rival expertise, the EU’s government Fee mentioned.
That would end in “greater costs, decrease high quality and fewer innovation for enterprise clients, and in the end customers,” the fee mentioned.
The fee has till Could 11 to determine on whether or not or to not clear the deal, which was announced last May, and could be one of many largest acquisitions of the yr.
Broadcom desires to determine a stronger foothold within the cloud computing market and VMware’s expertise permits massive companies to mix public cloud entry with inner firm networks. VMware has shut relations with each main cloud firm and supplier, together with Amazon, Google and Microsoft.
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