Computer chip and software maker Broadcom's $61 billion proposed purchase of cloud technology company VMware got the green light Wednesday from European Union regulators who were satisfied by concessions to ease competition concerns.
The European Commission, the EU's executive arm and top antitrust enforcer, said Broadcom made comprehensive commitments to provide access and system connections to its only existing rival, Marvell, as well as any other potential future competitors.
Recommended Videos
The commission said the concessions mean the deal “would no longer raise competition concerns.” The approval from the 27-nation bloc is conditional on Broadcom living up to its commitments for 10 years, with an independent trustee monitoring compliance.
The commission had opened an in-depth investigation last year over worries that the combination of Broadcom hardware and VMware software could lock out rival technology.
The deal still faces scrutiny elsewhere. Britain's competition regulator is carrying out an investigation with a deadline for a decision on Sept. 12.
Broadcom wants to establish a stronger foothold in the cloud computing market, and VMware’s technology allows large corporations to blend public cloud access with internal company networks. VMware has close relations with every major cloud company and provider, including Amazon, Google and Microsoft.
Also Wednesday, the EU fined U.S. biotech giant Illumina $475 million for buying cancer-screening company Grail without regulators' approval.