CISPE director of communications Ben Maynard dismissed fears that any action by the Commission could lead to a fine on VMware that would be passed on to its users, increasing prices even further. “I’m not sure that a fine is a likely consequence. This isn’t an action against Broadcom; this is against the European Commission’s decision,” he said.
Time is relative
If the action is successful, he said, VMware users “may well see a reduction in prices and a return to the terms before the acquisition. I certainly can’t see the action leading to higher prices for VMware users. Most users are already paying a higher price.”
Cases at the General Court have a reputation for being long, drawn-out affairs but Maynard said he hoped the action would be solved relatively quickly before adding, “We’re talking ‘quickly’ in European terms. We hope to have it referred back to the General Court within the first half of next year, with a decision made within a couple of years.”
Broadcom strongly disagreed with CISPE’s allegations. “The European Commission, along with twelve other jurisdictions around the world, approved our acquisition of VMware following a thorough merger review process, and we will uphold the commitments made to the Commission at that time,” a company spokesperson said.
