US FTC to stop ‘Nvidia-ARM’ merger… “Antitrust Violation”

The US Federal Trade Commission (FTC) has put the brakes on Nvidia’s acquisition of British semiconductor design firm ARM.

According to foreign media such as Reuters on the 2nd (local time), the FTC filed a lawsuit to prevent Nvidia from acquiring ARM. This is because Nvidia’s contract to acquire ARM hinders fair competition in the semiconductor industry.

The Wall Street Journal (WSJ) reported that “the FTC decision was made unanimously by a total of four members, two Democrats and two Republicans, under the presidency of Chairman Lina Khan, who is driving antitrust regulations on tech companies.”

At the request of the FTC, the Administrative Law Judge (ALJ) of the Commission will begin the trial from August 9, next year. The FTC may refer to the ALJ’s judgment or may file a lawsuit again in federal court based on this process.

Nvidia previously announced a plan to acquire ARM owned by Softbank for $40 billion (about 47 trillion won) in September last year. ARM is a key supplier of design technology to semiconductor companies. With Apple, Qualcomm, Samsung Electronics, and AMD as customers, he is in charge of designing and licensing semiconductors that account for 90% of smartphones shipped worldwide.

The FTC is concerned that Nvidia’s acquisition of ARM could put pressure on Nvidia’s competitors to use ARM’s technology.

“If Nvidia merges ARM, it will start to take control of the company’s technology and weaken its competitors,” the FTC said. did.

Concerns have been raised since the news of the merger between the two companies was actually announced. The European Union (EU) Commission has also begun an in-depth investigation into the merger case since last October.

Regarding the FTC complaint, Nvidia said, “We will continue to work to demonstrate to the FTC that this acquisition can benefit the semiconductor industry and promote competition.” It will create more opportunities for customers using all of ARM’s technologies.”


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