about a year ago Nvidia Advertised Acquisition of ARM for $40 billion. However, the deal has suffered delays and it is estimated that it will only happen later than expected, which will be in September 2022.
However, UK authorities view this purchase with some concern and note that it will create problems for Nvidia’s competitors.
Much has been said about Nvidia's acquisition of ARM, but the CEO of the American manufacturer, Jensen Huang, has already made it clear that the purchase, worth $40 billion, will take place after the estimated date.
However, In February of this yearCompanies such as Microsoft, Google and Qualcomm have expressed concern about the deal. Tech giants worry that the purchase could change the way ARM licenses its chip-making technology, which in turn will affect them. Therefore, they are rooting ARM to remain neutral, not restricting its technology in favor of Nvidia.
UK says buying ARM will create problems
UK Competition and Markets Authority (CMA) worried too With the acquisition of ARM, he says, buying Nvidia will only create problems for the competition.
According to the statements made by CMA Director Andrea Coseli on Friday (20):
We are concerned that Nvidia's takeover of ARM could create problems for Nvidia's competitors by limiting their access to key technologies and ultimately stifling innovation in a number of important and growing markets.
If the deal goes ahead, the CMA fears the combined company will have the ability and incentive to undermine Nvidia's competitive advantage by restricting access to ARM's intellectual property (IP). ARM's IP is used by companies that produce semiconductor chips and other related products that compete with Nvidia.
Thus, the British authority fears that this deal will affect markets such as data centers, gaming, the Internet of Things and self-driving cars. In this regard, the CMA will request a more in-depth investigation which may take about 6 months.
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