FTC Worries that Broadcom’s Purchase of ...

Press release published by: https://www.sdxcentral.com
Written by: Linda Hardesty
Source URL: https://www.sdxcentral.com/articles/news/ftc-worries-broadcoms-purchase-brocade-creates-fibre-channel-switch-monopoly/2017/07/

The Federal Trade Commission will likely approve Broadcom’s $5.9 billion acquisition of Brocade, but with conditions to prevent “anticompetitive effects.” The FTC is concerned that once Broadcom owns Brocade’s fibre channel switches, it will essentially have a monopoly on the market that provides the ASICS for those types of switches.

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“The worldwide market for fibre channel switches is highly concentrated, consisting of a duopoly between Brocade and Cisco,” states an FTC document entitled “Analysis of Agreement Containing Consent Order to Aid Public Comment.”

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