FTC Sues to Stop Nvidia's Acquisition of Arm

[cdmagurus.com]

The US Federal Trade Commission (FTC) is taking action to block the proposed acquisition of Arm by Nvidia. Arm designs chip architectures used throughout mobile and computing industries. Qualcomm, Apple, MediaTek, and Samsung all rely heavily on Arm technology for their chip designs. The merger would give Nvidia control over technology essential to some of Nvidia's competitors. According to FTC Bureau of Competition Director Holly Vedova, "This proposed deal would distort Arm's incentives in chip markets and allow the combined firm to unfairly undermine Nvidia's rivals." "The complaint also alleges that the acquisition will harm competition by giving Nvidia access to the competitively sensitive information of Arm’s licensees, some of whom are Nvidia's rivals, and that it is likely to decrease the incentive for Arm to pursue innovations that are perceived to conflict with Nvidia's business interests." Nvidia is a US company while Arm a British company. Britain's competition regulator has also come out against the deal.


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