Business, Law & Policy

Acer's Acquisition Of iGware Approved By FTC In Taiwan

Taiwan's Fair Trade Commission has approved Acer's acquisition of iGware, a U.S. cloud computing technology company, and said the acquisition only has slight influence on the Taiwanese cloud computing software service market.

In July 2011, Acer announced plans to acquire the entire stake in iGware for USD320 million, and the company submitted an application to the FTC.

According to FTC, Acer's major business is hardware and its core products are desktops and laptops; while iGware belongs to the software industry and the company is mainly engaged in cloud technology platform and software. The two companies have their respective markets and the relationship between them is upstream and downstream companies.

FTC said that by market share Acer is a leading company in the Taiwanese desktop and laptop computer markets; however, there are other strong competitors like Asus, Sony, HP, Apple, Lenovo, and Dell. It also faces competition from OEMs, including Hon Hai, Compal, and Quanta. Therefore, the acquisition will not change Acer's market share in the desktop and laptop markets in Taiwan.

In addition, FTC believed the acquisition's influence on the current structure of the Taiwanese cloud computing software service market is quite limited.

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