 |
| Nvidia's Arm Takeover Could Cause Real Problems |
The UK Competition and Markets Authority (CMA) is recommending a second phase of its investigation into Nvidia's acquisition of Arm, fearing the US company will be under pressure to stifle innovation.
The CEO of the US company said earlier this month that the Arm acquisition may take longer than initially expected.
Andreas, chief executive of the UK Competition and Markets Authority, said: "We are concerned that Nvidia's takeover of Arm will limit their access to key technologies, which will lead to real problems for this US company's competitors." . It stifles innovation in many important and growing markets. Consumers can no longer get new products or raise prices.
However, the full report from the UK Competition and Markets Authority (CMA) is yet to be released. However, the agency provided a summary outlining some of the reasons for the concern.
The UK Competition and Markets Authority (CMA) has identified significant competition concerns. This is due to the influence of this exclusive monopoly on the supply of processors, connectivity products, graphics processing units (GPUs) and SoCs in many global markets. Covers data centers, Internet of Things, gaming platform applications, and automobiles.
The UK Competition and Markets Authority (CMA) has also found that well-established ownership strategies reinforce each other and individually and cumulatively lead to a significant reduction in true competition potential. Stifling innovation and imposing more or less quality products.
The UK Competition and Markets Authority (CMA) believes the deal could lead to changes in Arm's business model and benefit the US company.
Although the UK Competition and Markets Authority (CMA) has indicated, NVIDIA has offered to ensure an open licensing system based on equal access and interoperability. The organizer said he thought that wasn't enough.
Nvidia's Arm Takeover Could Cause Real Problems
Even if the US company agreed to sell some of Arm's intellectual property, that wouldn't be enough without further investigation. As the UK Competition and Markets Authority (CMA) said, due to the complexity of licensing agreements.
The UK government announced in April that it was also concerned about the national security implications. The UK Competition and Markets Authority has also appointed the Capital Markets Authority to investigate the matter. But the executive summary did not draw any conclusions in this area.
The investigation will now be referred to the UK Foreign Secretary. This is due to competition law and national security reasons, which is why it was decided to move the merger process to the second stage of in-depth investigation. Or whether it should be referred to the UK Competition and Markets Authority (CMA) solely for competition investigation.
The UK is not the only regulator interested in this deal. The US company must now seek approval from these regulators before 2022.