The FTC claims that the sale of Arm to Nvidia will hurt competition in three global markets in which Nvidia will compete with Arm-based products. A lawsuit filed with the Trade Authority also claims that the acquisition will harm competition by giving Nvidia access to “competitively sensitive information” of Arm licensees, some of whom are Nvidia’s rivals.
The chances of completing the acquisition of ARM by Anvidia are diminishing. About two weeks after the British regulator’s decision to oppose the deal and a similar announcement from the European Commission. The United States Federal Trade Commission (FTC) now also requires it. The announcement caused a drop in the shares of Softbank, which owns ARM.
The FTC claims that the sale of Arm to Nvidia will hurt competition in three global markets in which Nvidia competes with Arm-based products. A lawsuit filed with the Trade Authority also claims that the acquisition will harm competition by giving Nvidia access to “competitively sensitive information” of Arm licensees, some of whom are Nvidia’s rivals.
“The FTC is demanding the blocking of the largest chip merger in history to prevent a chip conglomerate from stifling the next-generation innovation pipeline,” FTC Director of Competition Director Holly Voodoo said in a statement. “Tomorrow’s technologies depend on preserving today’s competitive and advanced chip markets. “This proposed deal will distort Arm’s incentives in the chip markets and allow the combined company to unfairly challenge Nvidia’s rivals.”