The announcement of the purchase of Arm Holdings, a British company specializing in semiconductors, processors and software, by Nvidia surprised the world and showed the power of the North American company. However, the fact that it owns such an important company for the manufacturing processes of electronic devices caught the attention of the sectors involved and national authorities. China was the first country to raise its voice to analyze the purchase and now the United Kingdom has followed suit.
UK to investigate Nvidia’s purchase of Arm to give its go-ahead
According to information from Gamesindustry.biz Nvidia’s acquisition of Arm Holdings has suffered a further setback as the UK Competition and Markets Authority (CMA) made official the initiation of an investigation into this movement that could have commercial and development implications for technology worldwide. In this regard, the agency pointed out that the investigation of the Nvidia – ARM Holdings operation entered phase 2, the first one started in January 2021, due to the concern that exists in the United Kingdom about what could result in terms of market competition.
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The concern is that the purchase of Arm will affect 4 sectors worldwide
In that sense, it was pointed out that the Arm Holdings purchase authorization could affect 4 sectors: data centers, Internet of things, automotive and gaming applications. This is precisely where the concern of authorities and companies lies, as Nvidia could have control of a specialized company and the strongest in the field of semiconductors and processors at a historical moment in which there is shortage and price speculation.
The investigation will last 6 months and the Secretary of State of the Department for Digital, Culture, Media and Sport, Nadine Dorries, noted: “Arm has a unique place in the global technology supply chain and we must ensure that the implications of this transaction are fully considered. The CMA will now inform me of competition and national security reasons and advise me on next steps. The government’s commitment to our thriving technology sector is unwavering and we welcome foreign investment, but it is It is correct that we fully consider the implications of this transaction. “
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