EU opens probe into Nvidia’s $40 bn acquisition of chip maker Arm

London : The European Commission has opened an in-depth investigation to assess the $40 billion acquisition of chip designer Arm by graphic chip giant Nvidia.
The Nvidia deal to purchase the UK-based company Arm from SoftBank for $40 billion was announced in September last year.
The Commission said in a statement late on Wednesday that the merged entity would have the ability and incentive to restrict access by Nvidia’s rivals to Arm’s technology, and that the proposed transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry.
Semiconductors are everywhere in products and devices that we use everyday as well as in infrastructure such as data centres.
“While Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in data centres, automotive and in Internet of Things (IoTs),” said Margrethe Vestager, Executive Vice-President and responsible for competition policy.
Also Read EU condemns ‘Israeli measures’ against children in Palestine “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,” Vestager added.