Home > Latest News > FTC Sues To Block Nvidia’s Arm Takeover

FTC Sues To Block Nvidia’s Arm Takeover

The U.S. Federal Trade Commission has sued in an attempt to block chip maker Nvidia’s acquisition of chip designer Arm, with the claim such a deal will “stifle innovative next-generation technologies.”

The deal will see Nvidia take over Arm for A$57 billion in cash and stock. If the deal passes, it will be the largest chip company merger to date. Although Arm don’t physical manufacture chips, they design and licence these designs to third parties.

“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said Holly Vedova, director of the commission’s Bureau of Competition.

“This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals,” she said.

Nvidia say the deal will “boost competition [and] create more opportunities for all Arm licensees,” noting it will keep Arm’s open licensing model, and pump more money into R&D, moves that will benefit competitors.

“As we move into this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition,” Nvidia said.



You may also like
Global Cloud Gaming Goes From Boom To Bigger Boom
Facebook And Google Made Secret Deal To Monopolise Digital Advertising
Fortnite Returns To iPhones Thanks To Loophole
India Launch World’s Largest Antitrust Investigation Into Google
CES 2022: New Nvidia GPUs Serve High End, Mainstream, And Notebooks