US sues Nvidia over ARM deal

December 03, 2021 // By Nick Flaherty
US sues Nvidia over ARM deal
The US trade regulator is suing Nvidia over the proposed acquisition of ARM

The Federal Trade Commission in the US has sued to block the merger of Nvidia and ARM.

The proposed deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips, it says.

“The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies,” said Holly Vedova, FTC Bureau of Competition Director. “Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm 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.”

The Commission said it had worked closely with competition authorities  in Europe, the UK, Japan and South Korea. Both the EU and the UK have announced extended investigations into the deal. There are also lawsuits around ARM China.

ARM is not commenting on the lawsuit, referring to Nvidia. "As we move into this next step in the FTC process, we will continue to work to demonstrate that this transaction will benefit the industry and promote competition," said Nvidia. "Nvidia will invest in ARM’s R&D, accelerate its roadmaps, and expand its offerings in ways that boost competition, create more opportunities for all ARM licensees and expand the ARM ecosystem. Nvidia is committed to preserving ARM’s open licensing model and ensuring that its IP is available to all interested licensees, current and future.

The FTC administrative trial is scheduled for 9th August 2022 which will further extend the deal and make it

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