Tech giants want to block NVIDIA’s purchase of ARM

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The acquisition of ARM by NVIDIA, a $ 40 billion deal announced in September 2020 that still needs to be approved by regulatory agencies, prompted Google, Microsoft and Qualcomm to join in a protest filed with U.S. antitrust agencies, as Bloomberg revealed last Friday (12).

According to the publication, the technology giants claim that the merger could harm competition in an area of ​​the industry deemed vital to their business and so they sought out regulators to oppose it. At least one of these companies wants the transaction to be evaluated and canceled.

Based in the UK, ARM licenses key technology such as chip design and software codes to all competitors, rather than competing with them. Companies like Samsung, Apple, Intel, Huawei and Amazon are some of the main customers served by it.

In this way, the group leading the protests against the negotiation believes that NVIDIA could limit rival companies’ access to technology already used by them. Another concern is a possible increase in the costs of the components supplied.

NVIDIA defends itself

Amid the complaints, the California-based company highlights plans to “continue ARM’s open licensing model and ensure a transparent and collaborative relationship with licensees.” A company spokesman said he was confident that regulators and customers would be convinced of this during the purchase review process.

It is worth mentioning that regulatory agencies in the USA, China, the United Kingdom and the European Union are currently reviewing the deal. In the American market, the body responsible for analyzing the merger is the Federal Trade Commission (FTC), whose recent changes in leadership may hinder approval, according to the vehicle.

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There is still no defined deadline for a response by such bodies.

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