The CMA will likely look at whether, after a takeover, ARM has any incentive to raise prices, lower quality or withdraw IP licensing to Nvidia's rivals and whether that would ultimately hit UK consumers in such areas as smartphone and other mobile devices, computers, games consoles and vehicle electronics.
"We will work closely with other competition authorities around the world to carefully consider the impact of the deal and ensure that it doesn’t ultimately result in consumers facing more expensive or lower quality products," said Andrea Coscelli, chief executive of the CMA, in a statement.
In the global semiconductor industry, the UK's position on the deal is not as significant as that of the authorities in the United States and China. With Nvidia as a US-domiciled company there is less reason for the US to object, but with US-China trade and geo-political tension yet to be dialled down, China may yet seek to leverage its position in relation to a number of proposed deals.
Alongside the deal Nvidia announced it would build a supercomputer in Cambridge.
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