The FTC is bringing a lawsuit to block NVIDIA’s takeover of ARM. The Commission says the merger will stifle competition

The FTC is bringing a lawsuit to block NVIDIA's takeover of ARM.  The Commission says the merger will stifle competitionThe case of the ARM-NVIDIA merger has dragged on for a long time. At the end of October, we informed you that the European Commission had started procedures to check a potential transfer in terms of future market competitiveness. Of course, this was not the only regulator to look at one of the most significant acquisitions in the industry in years. The FTC also investigated. Today we know that the US Federal Trade Commission is firmly opposed to the merger, arguing that such action could literally stifle competition. An investigation initiated earlier this year has been completed and the FTC is seeking a freezing action. NVIDIA took the floor and commented on the “allegations” made by the committee.

NVIDIA faces another hurdle in acquiring ARM. The US FTC has completed an investigation into the potential impact on competition and has decided to file a lawsuit.

The FTC is bringing a lawsuit to block NVIDIA's takeover of ARM.  The Commission says the merger will stifle competition [1]

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The procedure was initiated in early 2021 and took place shortly after talks with the Qualcomm brand. The American tech giant feared that the merger could result in an unfair advantage for the NVIDIA brand, which would be a severe blow to the competition. Other regulators are also investigating the case, which has forced the Greens to postpone the planned schedule for the $ 40 billion deal. The acquisition could give the company control over the technology it needs, among others Qualcomm, which recently unveiled the flagship Snapdragon 8 Gen 1 chip. The commission says that the case may affect not only the mobile industry, but broadly understood consumer electronics using ARM technology.

The FTC is bringing a lawsuit to block NVIDIA's takeover of ARM.  The Commission says the merger will stifle competition [2]

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In response to Android Central, NVIDIA says it intends to maintain the current licensing model after the merger. According to the declaration, the company will invest in ARM research and development, increase competition and even expand the ecosystem. The truth is, however, that assurances do not always translate into actual action, as we have seen many times. According to the US Federal Communications Commission, the administrative process will start on August 9, 2022.

Source: FTC, Android Central


About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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