To obtain permission from the FTC for the purchase of Brocade, Broadcom had to take on some obligations

In November last year, it was announced that Broadcom buys the company Brocade Communications Systems for $ 5.9 billion.

According to news reports, yesterday the deal was approved by U.S. antitrust regulators — the Federal trade Commission (FTC). Was previously obtained approval in Europe and Japan.

The FTC issued a permit on one condition: the company Broadcom has pledged that the company that will result from the merger with Brocade, will not use information received as a provider of Cisco System, for with it the competition in the market of network switches.

Broadcom supplies components Cisco and Brocade competes with Cisco in the switch market. Teaming up with Broadcom, Brocade could get a clear advantage. However, this would violate fair competition, so Broadcom has agreed that the division, acting supplier of Cisco, will be posted separately, and the network screen will not allow you to use the information received from Cisco, for purposes other than supply Cisco.

Source: Reuters



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