FTC Requires Data Firewall for $5.9B Broadcom-Brocade Deal

Semiconductor manufacturer Broadcom Limited has agreed to establish an information firewall to resolve antitrust concerns over its proposed $5.9 billion purchase of Brocade Communications Systems Inc., the Federal Trade Commission said July 3.

The agency is worried that Broadcom’s current access to the confidential business information of Brocade’s major competitor, Cisco Systems Inc., might be used to restrain competition or slow innovation in the worldwide market for “fibre channel” switches.

Broadcom could potentially use that information to “unilaterally” exercise market power or to coordinate action among Brocade and Cisco, raising antitrust concerns, the FTC said. The agency’s proposed consent order ...