UK watchdog: Broadcom buy of VMware may be bad for competition
Britain’s competition watchdog fears Broadcom’s proposed $61 billion purchase of VMware may lead to higher prices for servers and damage potential innovation.when the Competition and Markets Authority opened a preliminary inquiry into Broadcom’s purchase of the former Dell Technologies-owned virtualization and cloud biz.
Oddly enough, UK watchdog appears to have homed in on hardware, just as the EU has done. This is despite the potential risks it might hike prices of software, with VMware's wares by far the dominant platform in server virtualization., as it would make sense for any regulator to look for commitments around software pricing.
In a statement, David Stewart, exec director of the CMA, said it was aware that computing infrastructure props up the services that both public and private organizations rely on, “that is to say all of us.”
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