Nvidia’s ARM Merger Brings The FTC To Sue The Company

Nvidia is going through anoth­er hur­dle in its pur­suit to acquire ARM, the semi­con­duc­tor design com­pa­ny. The Fed­er­al Trade Com­mis­sion (FTC) is suing Nvidia over the poten­tial merg­er, after com­plaints were filed by Microsoft, Google, Qual­comm, and more.

The FTC states that Nvidia will gain an unfair com­pet­i­tive advan­tage by tak­ing own­er­ship of ARM, con­sid­er­ing the open-source designs are uses by many of its com­peti­tors. The FTC is wor­ried that Nvidia will steer ARM for its own pur­pos­es in the future, as well as the use of inside infor­ma­tion on how com­peti­tors are using their designs. This would give an obvi­ous com­pet­i­tive advan­tage for the future of semi­con­duc­tor designs.

Tomorrow’s tech­nolo­gies depend on pre­serv­ing today’s com­pet­i­tive, cut­ting-edge chip mar­kets,” stat­ed FTC Bureau of Com­pe­ti­tion direc­tor Hol­ly Vedo­va, via The Verge. “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.”

Jensen Huang, Nvidi­a’s CEO, has said that there are no plans to change the struc­ture of ARM after the merge. The plans are to close down ARM’s open-source nature and sup­ply to com­peti­tors. Nvidia did say that the pre­vi­ous­ly esti­mat­ed 18 month to final­ize the merg­er may not be met. Cur­rent own­er, Soft­bank, is giv­ing Nvidia until the end of 2022 to deal with all the legal issues it’s facing.

How­ev­er, the FTC suing them is just one more hill for Nvidia to climb, but the legal trou­bles are mount­ing to make the merge dif­fi­cult. The UK’s Com­pe­ti­tion and Mar­kets Author­i­ty announced last month that it is close­ly look­ing at the $40 bil­lion deal, with the Euro­pean Union announc­ing a sim­i­lar inves­ti­ga­tion in October.

IvanaHumperlot
IvanaHumperlothttp://buttonsmashgamers.com
I am a Platinum lover and an ex- Cod-aholic. I've been playing games since I was 5 years old and I refuse to quit, despite my mother's attempts to get me to. God of War and its successors are my all time favorite games.

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