'Serious competition concerns’ raised over sale of ARM
NVIDIA’s acquisition of Arm raises ‘serious competition concerns’, the Competition and Markets Authority (CMA) has found.
A summary of the CMA’s report, which was sent to the Secretary of State (SoS) for the Department for Digital, Culture, Media and Sport (DCMS) on 20 July, has now been published. The CMA has determined that an investigation into the deal between NVIDIA and Arm is warranted on ground of competition.
The CMA is concerned that the merged business would harm the competitiveness of NVIDIA’s rivals by restricting access to Arm’s intellectual property (IP). Arm’s IP is used by companies that produce semiconductor chips and related products, in competition with NVIDIA. Arm estimates that 70 per cent of the world’s population engages with Arm-based technology.
According to the CMA, this could stifle innovation across a number of markets, including data centres, gaming, the internet of things, and autonomous cars. This could result in more expensive or lower quality products for businesses and consumers.
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