The US Federal Trade Commission has filed a complaint challenging Nvidia’s proposed acquisition of chip designer Arm. According to the FTC, the proposed acquisition would give Nvidia an excessive amount of influence over the computing technology upon which competitors rely. Arm licenses its designs and technologies to several of the world’s largest technology companies, including Apple, Qualcomm, Sony, and Samsung.
Nvidia stated that it would “do everything possible to demonstrate that this deal benefits the industry.”
The firm designs and manufactures high-performance graphics cards for gaming and mobile computers, as well as software and artificial intelligence systems. The arm was founded in the United Kingdom and was acquired by Japan’s SoftBank in 2016.
Nvidia revealed its intention to acquire AMD in September 2020, but the acquisition has faced regulatory scrutiny and legal obstacles, including inquiries in the United Kingdom and Europe.
“The proposed acquisition will enable and incentive Nvidia to leverage its dominance of this technology to undercut competitors, reducing competition and ultimately resulting in inferior product quality, less innovation, higher pricing, and fewer choices,” the US watchdog stated.
Nvidia had previously pledged to continue Arm’s open-licensing strategy, to retain the Arm brand, to keep the company headquartered in the United Kingdom, and to hire additional staff.