UK investigates Nvidia ARM purchase due to serious risks to competition
Madrid, 20 years ago. (European Press) –
The UK’s Competition and Markets Authority (CMA) sees it necessary to conduct an in-depth investigation into US giant Nvidia’s acquisition of ARM when it determines it “is creating serious competition problems”.
The CMA has warned that if the deal goes ahead, the combined company may have the ability and incentive to undermine the competitiveness of Nvidia’s competitors by restricting access to ARM’s intellectual property, which is used by manufacturers. .
In addition, the CMA expressed concern that a loss of competition “could stifle innovation in various markets,” including data centers, gaming, the Internet of Things and self-driving cars, which could lead to increased cost or lower quality for businesses and consumers.
“We are concerned that Nvidia’s control of ARM could create real problems for Nvidia’s competitors by limiting their access to key technologies and stifling innovation in many important and growing markets,” said Andrea Coscelli, CEO of CMA. to miss the opportunity to acquire new products or raise prices.”
In September 2020, US microprocessor maker Nvidia agreed to pay about $40 billion (€34.055 million) in cash and stock to Japan’s SoftBank Group to acquire British microprocessor maker ARM.
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