UK says ARM takeover by Nvidia will create problems

About a year ago Nvidia advertised ARM’s $ 40 billion acquisition. However, the deal has been delayed and it is estimated that it will take place later than expected, namely in September 2022.

However, the UK authorities are somewhat concerned about the purchase and indicate that it will pose problems for Nvidia’s competitors.

Much has been said about Nvidia's acquisition of ARM, but CEO Jen-Hsun Huang has already indicated that the $ 40 billion purchase will take place after the estimated date.

Nevertheless, this FebruaryCompanies such as Microsoft, Google and Qualcomm have expressed concerns about the deal. Tech giants are concerned that the purchase could change the way ARM licenses its chip technology, which in turn will affect them. So, they are rooting for ARM to remain neutral rather than limiting its technology in favor of Nvidia.

UK Says ARM Purchase Will Create Problems

UK Competition and Markets Authority (CMA) worries too with the ARM acquisition and says the Nvidia acquisition will only create competition problems.

According to statements made this Friday (20) by CMA director Andrea Coselli:

We are concerned that Nvidia's control over ARM could create problems for Nvidia's competitors, limiting their access to key technologies and ultimately stifling innovation in a number of important and growing markets.

If the deal goes through, CMA fears the combined company will have the opportunity and incentive to undermine Nvidia's competitive edge by limiting ARM's access to intellectual property (IP). IP ARM is used by semiconductor chip and other related product companies that compete with Nvidia.

Thus, the British authorities fear that the deal could affect markets such as data centers, games, IoT and autonomous cars. In this regard, the CMA will request a deeper investigation, which may take about 6 months.