The EC said it is particularly concerned the “transaction would allow Broadcom to restrict competition in the market for certain hardware components which interoperate with VMware’s software”.

This, in turn, could lead to higher prices, lower quality and less innovation for business customers, and ultimately consumers. “Broadcom may start bundling VMware’s virtualisation software with its own software (namely mainframe and security software) and no longer offer VMware’s virtualisation software as a stand-alone product reducing choice and potentially foreclosing rival software providers,” said the commission.

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