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USA: The FTC is trying to block the acquisition of Arm by Nvidia

Η US Federal Trade Commission (FTC) said on Thursday it was resorting to legal means to prevent the acquisition of chip designer Arm, by Nvidia. The FTC raises issues related to antitrust law. In particular, he states that the $ 40 billion acquisition agreement would give Nvidia "control of computer technology and plans by rival companies to develop their own competing chips".

Nvidia Arm Acquisition

Ever since the acquisition was announced in September 2020, regulators have said they will investigate the deal. The new FTC lawsuit is the biggest hurdle Nvidia has faced to date and is effectively jeopardizing the deal.

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The FTC claims that the company Nvidia-Arm in combination "would have the means and motivation to stifle next-generation innovative technologies, including those used to operate data centers and driver-assistance systems in cars".

The Federal Trade Commission stresses the importance of competition in the market. "Tomorrow's technologies depend on maintaining today's competitive chip markets", He states characteristically, while he suggests that the acquisition of Arm by Nvidia, could undermine the rival companies.

Arm gives chip designs and related technology to companies such as Apple, Samsung and Qualcomm. However, the role of the company in the chip industry has always been his neutral supplier. With the acquisition, there are fears that Nvidia will cut off competitors from key Arm technology.

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Nvidia FTC

The acquisition will boost Nvidia and many of Arm's competing competitors are wary of Nvidia's promises to maintain Arm's independence and neutrality.

Nvidia “will work to prove that this deal will benefit the industry and will promote competition", Said the company. "Nvidia will invest in and expand its offerings in ways that enhance competition, create more opportunities for all Arm licensees, and expand the Arm ecosystem", Said the spokesman. "Nvidia is committed to keeping it open licensing model and ensure that its IP is available to all interested licensees, current and future".

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The FTC lawsuit comes shortly after the European Union announced it was investigating the deal.

Nvidia announced the acquisition of Arm in September 2020, saying at the time that it would "created the leading computer company for the age of artificial intelligence".

Source: CNET

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