The European Commission said it was concerned that the acquisition would hurt competition in the market for certain hardware components that work with Broadcom’s VMware’s software.
In the statement, it was stated that the purchase could lead to higher prices, lower quality and less innovation for commercial customers and consumers, and that a competition investigation was opened for this transaction.
Supervising mergers and acquisitions in large-scale companies operating in European countries is within the jurisdiction of the EU Commission.
The EU Commission evaluates whether there is an anti-competitive situation in its investigations and investigations. If anti-competitive situations are detected, the EU Commission can prevent mergers or acquisitions.
Broadcom announced in May that it would buy cloud computing technology firm VMware for $61 billion.