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EU Commission Conditionally Approves Broadcom's $61 Billion Acquisition of VMware

The European Commission has today announced that it has granted conditional approval—under EU Merger Regulation—for the $61 billion acquisition of VMware by Broadcom: "The approval is conditional upon full compliance with the commitments offered by Broadcom. Today's decision follows an in-depth investigation of the proposed acquisition. Broadcom is a hardware company that offers, among other products, Fibre Channel Host-Bus Adapters ('FC HBAs'), storage adapters and Network Interface Cards ('NICs'), which are hardware components that connect servers to storage or network. Broadcom has recently started expanding into software markets, mainly for security and mainframe applications. VMware is a software supplier offering mainly virtualization software that interoperates with a wide range of hardware, including FC HBAs, storage adapters and NICs.

A company spokesperson commented on the EU administration's conditional approval of the deal: "Broadcom provided the European Commission with a technology access remedy that preserves interoperability, a core principle that would not have changed as a result of this transaction...Broadcom did this to fully address the concerns expressed by the European Commission, and Broadcom welcomes the Commission's decision to accept this access remedy." The aforementioned "concerns" relate to the acquisition resulting in a possible restriction of "competition in the market for certain hardware components which interoperate with VMware's software." Broadcom is aiming to finalize their purchase of VMware by November 1, but they have to contend with forthcoming judgements from US and UK regulators prior to that date.

The EU Proposes New Mobile Device Regulation to Extend Product Life Time

Around 20 years ago, most people replaced their phones on a yearly basis in some countries, largely due to the fact that if you signed the right mobile service contract, you got a free phone. These days, it's not nearly as common to get a free device with your service, but then again, mobile service contracts also tend to cost much less these days in many countries. As such, people retain their devices longer, which has put the device upgrade cycle somewhere around the two or three year mark. Now the EU is proposing new regulations that will force the mobile device makers to re-think the current status quo, as the European Commission regulators are considering asking mobile device makers to offer not just better battery life, but also spare part availability for as long as five years after a device was launched.

When it comes to battery life, the EU Commission is intending to offer the device manufacturers two options. The first is that they'll have to offer batteries that can deliver 83 percent of their rated capacity after 500 charging cycles, followed by 80 percent capacity after 1000 charging cycles. Alternatively, they can offer replacement batteries and phone back covers to its end-user customers, so they can replace their batteries once the batteries no longer hold charge that meets the owners expectations.

Intel to Invest Over €33 Billion for Semiconductor R&D and Manufacturing in EU

Intel today announced the first phase of its plans to invest as much as 80 billion euros in the European Union over the next decade along the entire semiconductor value chain - from research and development (R&D) to manufacturing to state-of-the art packaging technologies. Today's announcement includes plans to invest an initial 17 billion euros into a leading-edge semiconductor fab mega-site in Germany, to create a new R&D and design hub in France, and to invest in R&D, manufacturing and foundry services in Ireland, Italy, Poland and Spain. With this landmark investment, Intel plans to bring its most advanced technology to Europe, creating a next-generation European chip ecosystem and addressing the need for a more balanced and resilient supply chain.

Pat Gelsinger, CEO of Intel, said: "Our planned investments are a major step both for Intel and for Europe. The EU Chips Act will empower private companies and governments to work together to drastically advance Europe's position in the semiconductor sector. This broad initiative will boost Europe's R&D innovation and bring leading-edge manufacturing to the region for the benefit of our customers and partners around the world. We are committed to playing an essential role in shaping Europe's digital future for decades to come."

EU Commission Pushing Forward with Unified Electronics Charger Standard and Unbundling of Chargers

What can only be called a long running drama, the EU has once again put its foot down when it comes to chargers for various consumer electronics devices, although it's mostly about smartphones and regular old mobile phones these days. The whole thing took off some time in 2009, although back then, it was a voluntary effort and according to today's press release by the EU Commission, we're down from 30 to three "competing" standards (micro USB, lightning and USB-C), but apparently that is still not good enough.

As such, the EU Commission has now decided that USB-C is the answer to their prayers and it'll now be an enforced standard for a wide range of devices if they're to be allowed to be sold in the EU. We doubt this will go down well with many device manufacturers, Apple being the obvious one here, even though the company has been slowly transitioning to USB-C on its tablets, none of its phones are using USB-C today. The following device categories are affected: smartphones, tablets, cameras, headphones, portable speakers and handheld video game consoles.

European Commission Fines Qualcomm €997M for Abuse of Dominant Market Position

The European Commission has fined Qualcomm €997m for abusing its market dominance in LTE baseband chipsets. Qualcomm prevented rivals from competing in the market by making significant payments to a key customer on condition it would not buy from rivals. This is illegal under EU antitrust rules.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Qualcomm illegally shut out rivals from the market for LTE baseband chipsets for over five years, thereby cementing its market dominance. Qualcomm paid billions of US Dollars to a key customer, Apple, so that it would not buy from rivals. These payments were not just reductions in price - they were made on the condition that Apple would exclusively use Qualcomm's baseband chipsets in all its iPhones and iPads.

This meant that no rival could effectively challenge Qualcomm in this market, no matter how good their products were. Qualcomm's behaviour denied consumers and other companies more choice and innovation - and this in a sector with a huge demand and potential for innovative technologies. This is illegal under EU antitrust rules and why we have taken today's decision."

WD's Purchase of Hitachi HDD Business Approved by EU Regulators

Western Digital (WD), secured an approval (conditional), from the European Union regulator in-charge of competition that enables it to go ahead and purchase Hitachi's hard disk drive business. WD is purchasing Hitachi's HDD assets for US $4.3 billion. "The proposed divestiture will ensure that competition in the industry is fully restored before the merger is implemented," EU Commissioner Joaquin Almunia said in a statement. What makes the EU approval conditional is the fact that WD had to first agree to sell several of its production operations, which it did, to Toshiba, early this month.

Microsoft's Official Statement Following EU Commission Objections on IE with Windows

It is not the first time that Microsoft has had run-ins with the European Commission. The problem that keeps coming up is what the commission believes to be anti-competitive practices, being that Microsoft is bundling its own software with Windows instead of offering them separately. As has been seen with Windows 7, Microsoft has tried to keep them happy this time, by only including Windows Media Player and Internet Explorer. The rest can be downloaded free of charge, by what Microsoft has named the Windows Live Suite. It seems that this is not enough however, despite Internet Explorer being included in Microsoft's operating systems for over ten years, they have decided that this is an anti-competitive move by Microsoft, and as such have issued a Statement of Objections. The commission has given Microsoft approximately two months to respond, the official statement from Microsoft follows:
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Jun 3rd, 2024 07:23 EDT change timezone

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