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The FTC has filed a lawsuit seeking to block Nvidia's planned acquisition of Arm

Nvidia's plan to acquire Arm looks to be in serious trouble. (Image: Arm)
Nvidia's plan to acquire Arm looks to be in serious trouble. (Image: Arm)
Nvidia’s plans to acquire fabless chip designer Arm look to be on increasingly shaky ground. The US Federal Trade Commission (FTC) is suing to block the deal on concerns that it will undermine competition and innovation following complaints raised by Google, Microsoft and Qualcomm.

The US Federal Trade Commission (FTC) has announced that it is suing to block Nvidia's proposed US$40 billion acquisition of Arm. This is not the first time international regulators have taken issue with the proposal, but it is perhaps the biggest stumbling block yet that Nvidia has faced regarding the deal. The FTC has taken its action following complaints raised by Qualcomm, Microsoft and Google.

FTC Bureau of Competition director Holly Vedova made the announcement through a statement:

The FTC is suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies. Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets. This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals. The FTC’s lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers that have far-reaching and damaging effects on future innovations.

It appears the biggest concern regarding Nvidia’s proposal has to do with the fact that it is currently competing in similar markets to other Arm-based licensees, and the deal would potentially give it an unfair competitive advantage. This could come through withholding technology to benefit itself or through gaining access to the sensitive IP of Arm’s licensing partners. Nvidia, naturally, rejects the FTC’s position and, at least at this stage, will aim to demonstrate the FTC’s concerns are unwarranted.

Buy the Arm-powered Nvidia Shield TV from Amazon from US$200.

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Sanjiv Sathiah
Sanjiv Sathiah - Senior Tech Writer - 1360 articles published on Notebookcheck since 2017
I have been writing about consumer technology over the past ten years, previously with the former MacNN and Electronista, and now Notebookcheck since 2017. My first computer was an Apple ][c and this sparked a passion for Apple, but also technology in general. In the past decade, I’ve become increasingly platform agnostic and love to get my hands on and explore as much technology as I can get my hand on. Whether it is Windows, Mac, iOS, Android, Linux, Nintendo, Xbox, or PlayStation, each has plenty to offer and has given me great joy exploring them all. I was drawn to writing about tech because I love learning about the latest devices and also sharing whatever insights my experience can bring to the site and its readership.
contact me via: @t3mporarybl1p
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 12 > The FTC has filed a lawsuit seeking to block Nvidia's planned acquisition of Arm
Sanjiv Sathiah, 2021-12- 3 (Update: 2021-12- 3)