Nvidia Faces Opposition on Arm Move

Nvidia Faces Opposition on Arm Move

Foto: Depositphotos

US tech companies reportedly opposed a $40 billion move by Nvidia to acquire UK-based chip design company Arm. The companies prompted the Federal Trade Commission (FTC) to begin a review of the deal.

Microsoft and Google lodged objections with the US regulator along with Qualcomm, which had made similar moves with the European Commission, UK Competition and Markets Authority (CMA) and China State Administration for Market Regulation. The companies are concerned Nvidia could restrict rivals’ access to Arm’s technology. Qualcomm, Huawei, Apple, Samsung and Intel are among a range of companies which use Arm’s IP in their chips.

The CMA last month began seeking industry views on the deal ahead of an investigation planned for later this year focused on whether Arm might withdraw its technology or raise the cost of licences if the deal goes ahead. Qualcomm’s concerns are reportedly shared by Huawei, which had urged Chinese regulators to either reject the deal outright or impose conditions to ensure continued access to Arm technology. When it announced the deal, Nvidia pledged to maintain Arm’s independence and predicted it could take up to 18 months to gain all necessary approvals.

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