Nvidia's Purchase of Arm Raises Serious Competition Concerns, UK Regulator Says
August 20 2021 - 09:10AM
Dow Jones News
By Ian Walker
The U.K. Competition and Markets Authority said Friday that
Nvidia Corp.'s $40 billion acquisition of British chip designer Arm
from SoftBank Group Corp. raises competition concerns and should
now be progressed for further investigation.
The regulator said the deal could lead to a loss of competition
and stifle innovation across a number of markets leading to more
expensive, or lower quality products.
The CMA said Nvidia has offered a behavioral remedy but that
this wouldn't alleviate its concerns. A behavioral remedy regulates
the continuing behavior of a business.
On April 19, the British government said that it wanted the CMA
to investigate the deal, citing national security grounds.
A Nvidia spokesman previously said that it expected the approval
process to take 18 months from the signing of the deal, which was
in September.
The U.K. Secretary of State will decide whether the deal will
need an in-depth phase 2 investigation on both competition and
national security grounds, or whether it should be passed back to
the CMA to investigate on competition grounds only.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 20, 2021 09:07 ET (13:07 GMT)
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