Nvidia's acquisition of ARM meets resistance again

A few days ago, out of antitrust and national security considerations, the British government is expected to order an in-depth investigation of Nvidia's plan to acquire British chip design company ARM for 30 billion pounds.

US regulators have also raised potential objections to this transaction. 

Although there are more and more signs that global regulators may be trying to prevent Nvidia’s deal, Nvidia said that it still believes that the acquisition is a major opportunity for ARM, its licensees and the benefits of the industry as a whole.

Nvidia disclosed the opposition of US regulators when it announced its latest quarterly earnings to Wall Street later on Wednesday. Nvidia said that the US Federal Trade Commission has “expressed concerns about the ARM transaction” and is discussing “remedial measures to address these concerns” with the agency.

In September 2020, SoftBank Group and Nvidia announced that the two parties have reached a definitive agreement under which SoftBank will sell ARM to Nvidia. This transaction has aroused opposition from some large US technology companies, who are worried that Nvidia will limit their access to ARM chip designs, giving it an unfair advantage in large chip markets such as data centers and automobiles.

Nvidia has made an offer to the UK and EU regulatory agencies to ensure that it will not cut off ARM's customers or change the ARM products they can obtain. But the proposal is not enough to stop the UK and EU regulators from continuing to conduct extended investigations. The UK Competition and Markets Authority also stated that it does not believe that any "behavior" remedies like this will be effective.

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