On December 3, according to foreign media reports, the US Federal Trade Commission (FTC) filed a lawsuit on Thursday, local time, demanding to block Nvidia’s plan to acquire Arm, making the global regulatory challenges faced by the transaction even worse.
The FTC believes that after Nvidia acquires ARM, it will have the ability and motivation to use its control of the technology to weaken competitors and reduce competition, which will eventually lead to a decline in product quality, reduced innovation, increased prices, and fewer choices, hurting millions of benefits from Arm. Products of the Americans.
The FTC said that the proposed transaction will allow Nvidia to control the technology and design on which competitors develop their own chips. After encountering opposition from the chip industry, the outside world generally expects the deal to break. British regulators said last month that they will launch an in-depth investigation of the transaction, and the European Union is also reviewing the transaction.
Nvidia first announced in September 2020 that it would spend US$40 billion to acquire Arm from Japan’s SoftBank. This move immediately triggered strong opposition from many semiconductor industry chain manufacturers. Many chip makers are worried that Nvidia may threaten the status of Arm’s basic chip technology as a neutral partner.
In August of this year, the British regulator said that the merger may harm competition and weaken opponents, and demanded that a long investigation be continued. Andrea Coscelli, head of CMA at the time, said: “We are worried that Nvidia’s control of Arm will cause real problems for its competitors, restrict their access to key technologies, and ultimately stifle innovation in some important and growing markets.”
On October 27, the European Commission also stated that it had conducted a comprehensive investigation into Nvidia’s acquisition of Arm. The agency believed that the concessions provided by Nvidia during its preliminary review were insufficient. The EU antitrust agency said it will decide whether to approve the transaction before March 15 next year.
In addition, on November 14th, according to foreign media reports, the British Competition and Markets Authority (CMA) planned to use antitrust and national security as the second reason for Nvidia’s plan to spend $40 billion to acquire British chip design company Arm. Phase investigation.