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F.T.C. Sues to Block Nvidia’s Takeover of Arm - The New York Times

F.T.C. Sues to Block Nvidia’s Takeover of Arm - The New York Times

F.T.C. Sues to Block Nvidia’s Takeover of Arm - The New York Times
Dec 02, 2021 1 min, 15 secs

The proposed deal would give Nvidia control over computing technology and designs that rival firms rely on.

WASHINGTON — The Federal Trade Commission on Thursday sued to block Nvidia’s $40 billion acquisition of a fellow chip company, Arm, halting what would be the biggest semiconductor industry deal in history, as federal regulators push to rein in corporate consolidation.

said the deal between Nvidia, which makes chips, and Arm, which licenses chip technology, would stifle competition and harm consumers.

The proposed deal would give Nvidia control over computing technology and designs that rival firms rely on to develop competing chips.

“Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets,” said Holly Vedova, the director of the F.T.C.’s competition bureau.

“This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals.”.

The action against the deal is the first major merger decision by the Federal Trade Commission under the leadership of Lina Khan, a critic of big corporate mergers and monopolies in technology.

In April, for example, Nvidia said it was building an Arm-based microprocessor for servers used in data centers.

But the deal was controversial from the start, with some of Arm’s big customers, like Qualcomm, worried about the heightened competition from Nvidia and the possibility of a rival gaining access to their confidential information.

said the merger would give Nvidia access to sensitive information about its rivals, who license technology and designs from Arm.

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