Wednesday, August 17

High! US Commission Wants to Block Nvidia’s Purchase of Arm | Levelup

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The sale and purchase operation involving Nvidia and Arm Holdings falters and this week the opposition was revealed by the Federal Trade Commission (FTC) of the United States, who filed a lawsuit to block it and prevent the process from taking place.

Nvidia and Arm Holdings’ operation is about to collapse

According to information from Gamesindustry.biz, the FTC filed a lawsuit with the competent authorities to block the purchase of Arm Holdings by Nvidia, alleging that this operation represents a disadvantage for different sectors and goes against the rules of market competition. According to the FTC, allowing Nvidia to buy from Arm Holdings would hurt at least 3 competition-related sectors: advanced driver assistance systems for passenger cars, DPU-based network interface cards, and Arm-based processors. for cloud computing service providers “.

The FTC’s lawsuit identifies risk points, such as: “Access to competitively sensitive information by Arm’s licensees, some of whom are rivals to Nvidia, making it likely that the incentive for Arm to pursue innovations that are perceived as conflictual will diminish. for Nvidia’s business interests. “

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The FTC believes that the purchase would affect competition in various sectors

Holly Vedova, director of the FTC’s competition office, stated, “Tomorrow’s technologies depend on preserving today’s cutting-edge and competitive chip markets. This proposed deal would distort Arm’s incentives in the markets of tomorrow. chips and would allow the company to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations. “.

Thus, Nvidia’s purchase of Arm Holdings appears to collapse after clear and frontal opposition from China, now the United States, and investigations by the United Kingdom that are expected to result in the same stance.

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