Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 17 (Reuters)-US chipmaker Broadcom will seek early approval from the European Union for its planned $61 billion antitrust deal to buy cloud computing company VMware by pointing to competition from Amazon, Microsoft and Google, according to Reuters.

The deal, announced in May, is the second largest in the world so far this year and marks an attempt by Broadcom to diversify its business into enterprise software.

CTOnews.com has learned that technology deals have drawn intense scrutiny from regulators around the world, who are concerned about the concentration of power in a small number of participants and the possibility that larger companies will shut down start-ups after they acquire them.

"this transaction has created more competition in the cloud computing market, where there are now strong players. There is no need to enter the second phase at all," one of the people said, referring to the second phase of the European Commission's four-month investigation.

"for the European Commission to enter the second phase, there must be real competition issues-horizontal, vertical, redemption risks-and I think we can prove that these risks do not really exist in this case," the person said. "

"We continue to make progress in various regulatory documents around the world, and this work is proceeding as expected," Broadcom said. "

In a 2016 review of Dell's $67 billion acquisition of EMC Corp, a data storage company, EU competition executives said EMC's VMware had a strong position but had neither the ability nor incentive to shut out competitors.

"over the past five years, what we have seen is an exponential increase in competitive pressure on VMWare from competitors that the European Commission did not take into account," another person said, referring to the three big cloud service providers, Amazon, Microsoft and Google.

"this should be the first stage of the fact-based investigation," the person said, referring to the EU's preliminary merger review.

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