UK authorities open preliminary probe into Broadcom's VMware acquisition

The United Kingdom's Competition and Markets Authority has opened a preliminary probe into Broadcom's planned acquisition of VMware.

A Monday announcement by the Authority states the probe will consider whether the transaction represents a "relevant merger situation" under the terms of the Enterprise Act of 2002 and, if so, "whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services."

The Act offers a two-pronged test to identify a "relevant merger situation":

A combined VMware and Broadcom almost certainly meets both thresholds with the virtualization giant's core private cloud stack alone. The Authority's call for input from interested parties therefore seems to be an opportunity for discussion of whether the deal will harm markets.

That may be a hard case to make in VMware's core server virtualization market. While Virtzilla is often criticized for charging high prices, plenty of open source and proprietary alternatives are available.

As other regulators have considered the deal, Broadcom has run the argument that VMware's multi-cloud management tools improve competitiveness of the cloud computing market, regardless of who owns them.

The overlap between VMware's security portfolio and Broadcom's products inherited from Symantec and CA could be represented as a nastier market concentration - although, again, alternatives are not hard to find.

If the Authority decides the Broadcom/VMware deal is indeed a "relevant merger situation", a public interest test applies if the transaction is found to have implications for national security, financial stability, media plurality or to combat a public health emergency.

The Register cannot imagine the circumstances in which Broadcom buying VMware would meet those tests.

The Act does include allowances for intervention on cryptographic technology - but not the sort of stuff offered by either VMware or Broadcom.

Broadcom has described the probe as expected, unworrying, and unlikely to derail its ambition of closing the deal by late 2023. ®

Search
About Us
Website HardCracked provides softwares, patches, cracks and keygens. If you have software or keygens to share, feel free to submit it to us here. Also you may contact us if you have software that needs to be removed from our website. Thanks for use our service!
IT News
Dec 3
Google says Android runs better when covered in Rust

Banishing memory safety bugs cuts critical vulnerabilities

Dec 2
Google frees nifty ML image-compression model... but it's for JPEG-XL

Yep. The very same JPEG-XL that's just been axed from Chromium

Dec 2
Blockchain needs a reason to exist, Boris Johnson tells roomful of blockchain pros

As for Twitter, politicians need to grow thick skins and stop mistaking it for advertisement

Dec 2
DoJ worries messaging apps could hide evidence of crime, corruption

Record keeping rules might need a tweak to ensure content is preserved

Dec 1
Microsoft adds silicon muscle into latest Azure SQL database configs

Intel's 'Ice Lake' and AMD's 'Milan' chips bump up speeds and feeds

Dec 1
.NET open source is 'heavily under-funded' says AWS

RE:INVENT Amazon web arm investing in Microsoft's platform to help customers escape Windows

Dec 1
When it comes to managing application complexity, simple is strong

Webinar And you can deploy them across cloud and edge environments using Kubernetes