European Regulators Suspend Investigation Of NVIDIA-Arm Deal

EU antitrust regulators have temporarily suspended an investigation into NVIDIA’s multibillion-dollar purchase of British chip maker Arm, as they await additional information. This was announced by the European Commission.

REUTERS / Robert Galbraith

Image source: REUTERS / Robert Galbraith

The European Commission was supposed to consider the deal before November 25, but put the process on pause, thereby giving itself more time. It should be noted that such delays have become common in the wake of the COVID-19 pandemic, as companies face difficulties collecting data from customers who are experiencing constraints and staff shortages.

This deal faced a new obstacle last week that could potentially destroy it. It became known that the US Federal Trade Commission (FTC) has filed a lawsuit to block NVIDIA’s purchase of Arm due to the fact that the deal violates the principles of fair competition. According to the regulator, NVIDIA’s takeover of Arm could lead to restricting competitors’ access to Arm technologies, which will negatively affect technological progress.

The move was taken by the FTC two months after the EU competition supervisor warned that the NVIDIA-Arm deal could lead to higher chip prices, as well as reduced choice and innovation.

The Competition and Markets Authority (CMA), the UK’s antitrust agency, has also announced its intention to conduct a full-scale investigation of the NVIDIA-Arm deal, which has expressed serious concerns about the possible negative impact of the deal on the conditions of free competition, as well as on national security.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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