The European Commission has announced that it is investigating recent acquisitions made by Western Digital and Seagate in the computer storage market.
The EC said that it was investigating Western Digital’s acquisition of Hitachi’s storage business which Seagate is having its acquisition of Samsung’s hard disk drive business.
The European anti-trust regulator fears that the acquisitions can have a negative impact on the global market of hard disk drives.
According to The Inquirer, Western Digital will become largest HDD vendor in the world while Seagate will also gain a considerable market share following the acquisition.
Western Digital and Seagate could potentially work together to raise the prices of hard disk drives, the EC said, and could also deploy some anti-competitive practices that would have a negative impact on the entire market.
The EC is also of the opinions that the acquisitions would result in lesser sourcing of TDK heads that might have a terrible impact on Toshiba’s HDD business.
"Hard drives are the backbone of the digital economy," said Joaquín Almunia, VP of competition policy at the EC.
"The sector has already experienced significant consolidation and the proposed acquisitions will further reduce competition. The Commission will carefully examine if effective competition is preserved and innovation encouraged." she added.