FTC Sues to Block $40 Billion Nvidia-Arm Merge

The Federal Trade Commission late on Thursday said it had sued to block Nvidia’s $40 Billion acquisition of Arm. If the lawsuit is won, Nvidia will be prevented from taking over Arm, which will mark the end of the potential deal. 

Suing to Block

The regulator believes that the acquisition will severely hamper competition in such fields as Arm-based datacenter CPUs, car autopilot systems, and smart network cards for datacenters.
In the statement the FTC alleges that “The proposed vertical deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips.” In fact, the FTC opposes vertical integration of Nvidia and calls it a precedent of “an illegal vertical merger”. 

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