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EU court to review Broadcom’s $61b VMware deal
European Union judges will review Broadcom Inc.’s US$61 billion acquisition of VMware Inc.
This follows a legal complaint from the Cloud Infrastructure Services Providers in Europe (CISPE), which includes Amazon Web Services.
CISPE alleges that Broadcom has raised prices and imposed restrictive licensing terms on VMware’s software since the deal closed in November 2023.
The software is essential for cloud providers to manage multiple systems on a single server.
The group claims Broadcom’s actions have reduced competition and affected European cloud users.
The acquisition underwent extensive regulatory reviews worldwide, including in the EU, UK, South Korea, Japan, and China.
The EU General Court in Luxembourg will evaluate these claims in an upcoming hearing.
Separately, a Broadcom spokesperson told Tech in Asia in a statement that the company “strongly disagrees with these allegations.”
“The European Commission, along with twelve other jurisdictions around the world, approved our acquisition of VMware following a thorough merger review process, and we will uphold the commitments made to the Commission at that time,” the spokesperson said.
Recent Broadcom developments
Update: (July 25, 1:10 p.m. SGT): This article was updated to add a statement from Broadcom’s spokesperson.
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