November 18, 2021
2 mins read

Nvidia’s $40 bn Arm acquisition undergoes deeper scrutiny

The European Commission last month opened an in-depth investigation to assess the $40 billion acquisition of Arm by Nvidia…reports Asian Lite News.

Graphic chip giant Nvidia’s $40 billion acquisition of the British chip designer Arm is now facing a deeper scrutiny by the UK watchdog.

In an updated notice, the UK’s Competition and Markets Authority (CMA) said late on Tuesday that the government is publishing the CMA’s Phase 1 report which recommends moving to a Phase 2 investigation on competition grounds.

“The CMA has found that the transaction may result in a substantial lessening of competition across four key markets: Data centres, Internet of Things, automotive and gaming,” the UK watchdog said.

Nadine Dorries, the Secretary of State for Digital, Culture, Media and Sport, has issued a Phase 2 probe under Section 45(4) of the Enterprise Act 2002.

This instructs the Competition and Markets Authority to carry out Phase 2 investigation on the grounds of both competition and national security.

The CMA will have 24 weeks to conduct this investigation before delivering a final report and the deadline may be extended by up to eight weeks.

The European Commission last month opened an in-depth investigation to assess the $40 billion acquisition of Arm by Nvidia.

The Nvidia deal to purchase the UK-based Arm from SoftBank for $40 billion was announced in September last year.

The European Commission has also opened an in-depth investigation to assess the $40 billion acquisition of chip designer Arm by graphic chip giant Nvidia.

The Nvidia deal to purchase the UK-based company Arm from SoftBank for $40 billion was announced in September last year.

The Commission said that the merged entity would have the ability and incentive to restrict access by Nvidia’s rivals to Arm’s technology, and that the proposed transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry.

“While Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in data centres, automotive and in Internet of Things (IoTs),” said Margrethe Vestager, Executive Vice-President and responsible for competition policy.

The Commission will carry out an in-depth investigation into the effects of the transaction to determine whether its initial competition concerns regarding these markets are confirmed, and will take a decision by March 15, 2022.

ALSO READ-UK reaffirms security commitment to Ukraine

Previous Story

F-35 fighter jet crashes in Mediterranean

Next Story

Kia reveals all-electric SUV concept at AutoMobility LA

Latest from -Top News

Trinidad Eager to Deepen Ties with India: Envoy

Trinidad and Tobago, home to a large Indian-origin population—many of whom are now in their fifth and sixth generations—offered a unique cultural resonance to the visit….reports Asian Lite News Prime Minister Narendra

Labour peer David Lipsey found dead

In the House of Lords, Lord Lipsey was known for his dedication to social justice and his commitment to improving the lives of others The Labour peer, Lord David Lipsey, has been

UK Space Agency set to clean up space debris

Efforts to clean up space debris mark a pivotal step in the UK’s efforts to protect vital space infrastructure and ensure the long-term safety of the orbital environment The UK Space Agency

UK shuts both its Afghan resettlement schemes

According to the Ministry of Defence, the Afghan Relocations and Assistance Policy has fulfilled its initial objective of supporting Afghans who worked alongside the UK military The government has announced the closure
Go toTop