US FTC To Commence Inquiry Into Nvidia’s [NASDAQ: NVDA] Acquisition Of Arm

The US Federal Trade Commission has started an inquiry into the agreement of Nvidia Corporation [NASDAQ: NVDA] to buy Arm Ltd. American multinational firm has experienced the opposition of other technology giants as the firm is pursuing this buying agreement of Arm Ltd.

Earlier in September, Nvidia Inc has made a deal with SoftBank Group to acquire UK-based chip designer Arm Holdings for as much as $40 billion. Microsoft Inc, Alphabet Inc, and Qualcomm Inc. have objected against this deal and made a complaint with US antitrust regulators about the buying deal.

Qualcomm stated that the firm is against the buying of Arm Ltd by Nvidia Inc. Arm Ltd is currently owned by Japan’s Softbank Inc. The investigation of FTC has entered into the second phase and has requested Nvidia, Arm, and Softbank to provide further information related to the deal.

Arm’s energy-effective chip designs are used in 95% of the world’s smartphones and 95% of the chips created in China. The firm licenses its chip designs to more than 500 companies who use them to make their own chips. This is the reason the major tech giants are against this deal.

Qualcomm and other firms stated that they have this fear that after the acquisition of Arm, Nvidia will gain full control over the technology of the firm and prevent other firms to get the benefit from Arm’s technology.

Five industry sources and tech investors have disclosed that there are chances that the regulators have stopped this deal from execution. But the Nvidia Corporation has disclosed that this deal will be very beneficial for the firm.