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| Nvidia's acquisition of Arm is under scrutiny |
According to CNBC, Nvidia's $40 billion acquisition of British chip designer Arm is subject to further investigation by the UK's Competition and Markets Authority (CMA).
A notice posted on the British government's website confirmed that the UK's Minister for Digital, Culture, Media and Sport, Nadine Dorries (Nadine Doris), has directed the UK Competition and Markets Authority to launch the second phase of its investigation.
The investigation lasted 24 weeks to assess potential national security risks and competition concerns related to the acquisition.
The UK Competition and Markets Authority completed the first phase of its investigation with Andrea Coseli, head of the regulator, in August. He commented that control of American society might be over British society. What is causing them real problems.
The UK Competition and Markets Authority has recommended a second phase of the investigation. So it's not shocking that Doris decided to take the next step.
In addition to competition in the UK and market regulators, the European Union launched its own investigation into the acquisition late last month on the grounds that the acquisition of Arm could give the US company an advantage.
This can further extend the deal. This does not include potential investigations from the United States and China.
Nvidia deals as part of national security investigations
Nvidia CEO Huang Renxun originally set the deadline for the company's acquisition of Arm to be March 2022. However, with regulators monitoring the deal closely, he admits it could take longer.
In 2016, the Japanese company SoftBank Arm acquired $31 billion. The arm is technically neutral. These plans are licensed to tech giants such as Samsung, Apple and Qualcomm, who then make and install the hardware on their devices.
Given that Nvidia is actively competing with many of Arm's customers, regulators fear that the US company could put other companies at a disadvantage and prevent Arm from developing more powerful chips for its competitors.
Microsoft, Google, and Qualcomm have similar concerns, which is that Nvidia has the flexibility to choose Arm's design methods and which companies to sell at and at what price.
Such outcomes will also have an impact on the company's competitors and consumers. The lack of codes makes it difficult to purchase certain items. Like PlayStation 5, Xbox Series X, Xbox Series S and new graphics cards.
If NVIDIA decides to use Arm for special processing, the available chips may not perform well. or spend more.