The US to block Nvidia’s purchase of ARM

© Nvidia.

After the European Commission indicated last October that it was opening an in-depth investigation into Nvidia’s US$ 40 billion purchase of the ARM chip designer, the US Federal Trade Commission is now showing its teeth. The government agency said it is taking legal action to prevent the merger from going through over concerns that the combined companies will “stifle competing next-generation technologies.” FTC officials believe the deal -- the largest semiconductor and chip merger in history -- would give Nvidia too much power, hurt competition and drive up prices for consumers. The legal action follows the FTC’s investigation into the transaction, triggered by a complaint from Alphabet (Google), Microsoft and Qualcomm shortly after the merger was announced. In a statement, a spokesperson for Nvidia said the company will continue to fight and “to work to demonstrate that this transaction will benefit the industry and promote competition.” Needless to say, with the combined actions of regulators in both Europe and the US, the initiative seems doomed...

⇨ The Verge, Chaim Gartenberg, “The FTC is suing to block Nvidia’s $40 billion purchase of Arm.”

2021-12-02