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FTC sues to block NVIDIA’s purchase of ARM
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[QUOTE="Darrell Etherington, post: 2178"] Jon Fingas Contributor Jon Fingas is a contributing writer at [URL='https://www.engadget.com']Engadget[/URL]. More posts by this contributor [LIST] [*][URL='https://techcrunch.com/2021/11/18/apple-reportedly-aims-to-debut-a-fully-self-driving-car-in-2025/']Apple reportedly aims to debut a fully self-driving car in 2025[/URL] [*][URL='https://techcrunch.com/2021/11/15/tesla-is-deploying-starlink-satellite-internet-dishes-at-superchargers/']Tesla is deploying Starlink satellite internet dishes at Superchargers[/URL] [/LIST] NVIDIA’s plan to [URL='https://www.engadget.com/nvidia-arm-acquisition-softbank-000846113.html']acquire ARM[/URL] just hit a major stumbling block. The Federal Trade Commission [URL='https://www.ftc.gov/news-events/press-releases/2021/12/ftc-sues-block-40-billion-semiconductor-chip-merger']has sued[/URL] to block the merger over concerns the $40 billion deal would “stifle” competition for multiple technologies, including datacenters and [URL='https://www.engadget.com/nvidia-mercedez-benz-autonomous-vehicle-computer-173014585.html']car computers[/URL]. ARM is a “critical input” that fosters competition between NVIDIA and rivals, the FTC said, and a merger would give NVIDIA a way to “undermine” those challengers. The FTC was also worried NVIDIA would have access to sensitive info from ARM licensees. The merger could reduce the incentive for ARM to develop tech that might run counter to NVIDIA’s business goals, officials added. The administrative trial is due to start August 9th, 2022. The company didn’t appear bothered. NVIDIA characterized the lawsuit as the “next step” in the FTC process, and repeated its arguments in favor of the buyout. The acquisition would “accelerate” ARM’s product plans, foster more competition and still protect the chip architecture designer’s open licensing model, according to NVIDIA. You can read the full statement below. Despite the claims, an FTC lawsuit is a huge issue for NVIDIA. The Commission files lawsuits like these when it believes a company is breaking the law — concessions might not be enough. It also comes after the European Commission launched an investigation into the purchase in October. NVIDIA is facing questions from major regulators clearly wary of the acquisition, and those agencies might not accept the answers. As it stands, NVIDIA’s competition likely isn’t happy. [URL='https://www.engadget.com/qualcomm-objects-nvidia-arm-purchase-191827082.html']Qualcomm reportedly objected[/URL] to the ARM deal in communications with the FTC (among other bodies) over fears NVIDIA might refuse to license designs. And when heavyweights like Apple, MediaTek and Samsung also depend on ARM, it’s doubtful the rest of the market would be enthusiastic. At the least, the trial would likely delay closure of the union past NVIDIA’s original 2022 target. [B]Editor’s note:[/B] [I]This article originally appeared on [URL='https://www.engadget.com/ftc-lawsuit-nvidia-arm-212113933.html']Engadget[/URL].[/I] [/QUOTE]
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FTC sues to block NVIDIA’s purchase of ARM
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