Nvidia’s acquisition of ARM has been facing obstacles ever since the company announced the deal and in the latest setback, the European Union antitrust regulators have now opened a full-scale investigation into the acquisition of ARM, a deal worth $54 billion.
The antitrust regulator will be looking into the concerns about the deal leading to higher prices, fewer options to choose from, and reduced innovation. The Commission said that it would make a decision about the deal by March 15, 2022.
This full-scale investigation comes after a preliminary review during which Nvidia reportedly offered concessions that were viewed as insufficient by the European Commission.
Nvidia has not disclosed what these concessions are but it has previously said it would maintain ARM as a neutral technology supplier to soothe concerns from customers such as Qualcomm, Samsung Electronics, and Apple, among others.
EU competition chief Margrethe Vestager said: “Whilst Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in datacentres, automotive and in the Internet of Things. Our analysis shows that the acquisition of Arm by Nvidia could lead to restricted or degraded access to Arm’s IP, with distortive effects in many markets where semiconductors are used.”
Commenting on this, Nvidia spokesperson said: “We are working closely with the European Commission through the regulatory process. We look forward to the opportunity to address their initial concerns and continue demonstrating that the transaction will help to accelerate Arm and boost competition and innovation, including in the EU.”
A couple of months ago, the UK regulator found that the acquisition of ARM by Nvidia could damage competition and weaken rivals, and required a further lengthy investigation.
For the uninitiated, NVIDIA, the world’s biggest graphics card, and AI chips maker announced the acquisition of ARM last year. SoftBank had acquired ARM back in 2016 for 31.4 billion US Dollars. ARM is a known chip designer with its architecture being one of the most popular designs used in most smartphone chips.
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