The Federal Trade Commission announced it has sued to block Nvidia Corp.'s $40 billion acquisition of Arm Ltd. to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies. As per the complaint, the acquisition will harm competition in three worldwide markets in which Nvidia competes using Arm-based products.

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RTTNews | Dec 3, 2021 01:46AM EST

01:46 Friday, December 3, 2021 (RTTNews.com) - The Federal Trade Commission announced it has sued to block Nvidia Corp.'s $40 billion acquisition of Arm Ltd. to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies. As per the complaint, the acquisition will harm competition in three worldwide markets in which Nvidia competes using Arm-based products.

"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," said FTC Bureau of Competition Director Holly Vedova.

The complaint names Nvidia, Arm, and Arm owner Softbank Group Corp. The trial is scheduled to begin on August 9, 2022.

Read the original article on RTTNews ( https://www.rttnews.com/3246623/ftc-to-block-nvidia-arm-deal-to-protect-critical-infrastructure-markets-from-illegal-vertical-merger.aspx)

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