NVDA NVIDIA Corporation

By Ed Frankl

The European Commission said Wednesday that it has launched an in-depth investigation into NVIDIA Corp.'s proposed $40 billion acquisition of U.K.-based semiconductor manufacturer Arm.

The Commission said it is concerned that the merged entity would have the ability and incentive to restrict access to Arm's technology by NVIDIA's rivals.

Antitrust investigators in Brussels will also look into concerns that the proposed transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry.

U.K. competition regulators in August said they would investigate further concerns the deal could lead to a loss of competition and stifle innovation, after the British government said it wanted the deal investigated over national-security grounds.

The European Commission was notified of the proposed deal in September, after which Santa Clara, Calif.-based NVIDIA submitted commitments to address some of the EU's preliminary concerns on Oct. 6, the Commission said.

However, the Commission said it "considered these commitments insufficient to clearly dismiss its serious doubts as to the effect of the transaction".

The commission now has 90 working days, until March 15, 2022, to take a decision, it said.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

October 27, 2021 12:21 ET (16:21 GMT)

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