British regulators said the Nvidia-Arm deal has caused “serious competition concerns”



The British competition regulator recommended an in-depth investigation into Nvidia’s US$54 billion acquisition of British chip designer Arm, saying that the transaction contained “serious competition concerns.”

The Competition and Markets Authority (CMA) released the results of a survey on Friday report The government stated that the transaction could “stifle innovation in multiple markets.”

US chip maker NVIDIA reached an agreement with Japanese investment group SoftBank in September last year to acquire Arm for US$40 billion in stocks and cash. After Nvidia’s share price rose, the deal is now worth $54.3 billion.

But this transaction faces regulatory obstacles globally, and Nvidia has recently admitted this Won’t complete the transaction Within its initial 18-month time frame.recently interview Nvidia CEO Huang Renxun said in an interview with the Financial Times that he is still “confident” that it will be closed by the end of 2022.

Britain has forwarded the deal National Security Censorship and the EU may open look deep into People familiar with the matter said that the transaction will be completed within a few days or weeks.NVIDIA only started recently Apply for customs clearance in China, Arm still exists Get into a dispute The person in charge of the joint venture with Arm China.

The CMA stated that it has received “a large number of detailed and reasonable submissions from customers and competitors” complaining about the proposed transaction.

It concluded that since Arm’s design has been widely licensed to other chip manufacturers, the deal may give Nvidia the ability to harm its competitors by restricting competitors’ access to Arm technology-which Nvidia denies.

Nvidia provides a set of “behavioral remedies” to appease regulators, but the CMA stated that it “does not believe that any form of behavioral remedies can solve the competition issues it has identified.”

CMA CEO Andrea Coscelli said on Friday: “We are concerned that Nvidia’s control of Arm may limit Nvidia’s competitors’ access to key technologies, and eventually stifle innovations in some important and growing markets, thereby bringing real benefits to Nvidia’s competitors. The problem. This may eventually cause consumers to miss new products or increase prices.”

CMA stated that innovation may be affected in a wide range of areas, including data centers, gaming, the “Internet of Things” and self-driving cars.

Culture Minister Oliver Dowden must now decide whether to launch an in-depth investigation based on national security and competition issues or to return control to competition regulators as a normal “second stage” merger investigation.

Nvidia said in a statement: “We look forward to the opportunity to resolve the initial comments of the CMA and resolve any concerns that the government may have. We still believe that this transaction will benefit Arm, its licensees, competition and the United Kingdom.”

Huang has previously stated that he has no intention of “restricting” or “rejecting” Arm’s technology to any customer, and promised to maintain Arm’s open licensing a letter Huang told the Financial Times that NVIDIA will “continue to support all Arm customers and make Arm technology available to the entire market.”

Additional report by Javier Espinoza in Brussels


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