FTC files lawsuit against Nvidia to block ARM purchase

The United States Federal Trade Commission has filed a lawsuit against Nvidia with the aim of block the ARM purchase transaction, an operation that the FTC alleges is anticompetitive, as pointed out by Muycomputer.

The Commission assures that the purchase would give Nvidia the means to control the supply of chips and designs used by its competitors, which would harm competition and curb competition in various technology sectors. Among them the cloud, data centers and autonomous cars.

As the FTC sees it, “the proposed merger would give Nvidia the ability and incentive to use its control of this technology to undermine its competitors, reducing competition and resulting in reduced product quality, less innovation, higher prices. high and less choice, hurting the millions of Americans who benefit from ARM-based products. “

This body also alleges that the purchase would harm competition, giving Nvidia access to sensitive information regarding competition from companies that have ARM licenses, some of which are rivals of Nvidia, something that could also reduce the incentive for ARM. to advance innovations perceived as conflict for Nvidia’s businesses.

The FTC’s decision to sue Nvidia received unanimous support from the commission committee. The sight for demand is already scheduled, and will take place in August 2022. This demand is another obstacle, quite serious, for the purchase agreement of both companies to be closed, not in the expected deadlines, but at some point, and joins the investigations that it is already facing in the European Union and the United Kingdom. Despite everything, Nvidia continues to grow, as shown by the 7.1 billion dollars in revenue, 9% more, than they have achieved in the third quarter of their fiscal year 2021.

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