Arm is one of the leading provider of architecture technology to most semiconductor companies. Arm’s instruction set is at the core of nearly all mobile processors that power smartphones, including those made by Apple and Android, that use Qualcomm chips.
“The lawsuit alleges that the proposed merger would give Nvidia the ability and incentive to use its control over this technology to undermine its competitors, reduce competition and, ultimately, lead to lower product quality, less innovation, higher prices, and fewer choices,” the FTC said in its statement.
Federal Trade Commission (FTC) ramps up enforcement of antitrust laws
In addition to the United States, ARM has also undergone screening abroad. The European Commission announced an in-depth investigation into the deal in October.
“As we move to this next step in the FTC process, we will continue to work to demonstrate that this transaction benefits the industry and enhances competition,” an Nvidia representative said in a statement.
The trial defining this acquisition will begin August 9, 2022. Nvidia previously said it expects to close the Arm deal in 2022.
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