UK watchdog investigates chip maker Nvidia's takeover of Arm
07 January, 2021
British regulators are investigating graphics chip maker Nvidia's $40 billion buy of chip designer Arm above concerns about its influence on competition.
The Competition and Marketplaces Authority said Wednesday it'll check out the deal's effect about how Arm treats Nvidia's rivals. The watchdog said it'll examine if the deal gives Arm "an incentive to withdraw, raise rates or reduce the quality" of its offerings to Nvidia's chipmaking competitors.
Andrea Coscelli, leader of your competition and Market segments Authority, said the watchdog “will work closely with various other competition authorities all over the world to carefully consider the affect of the offer and make certain that it doesn’t ultimately lead to consumers facing more expensive or lower quality products.”
UK-based mostly Arm Ltd., whose chip models power the vast majority of the world’s smartphones, declined to comment, as have Nvidia Corp, which is situated in Santa Clara, California.
Nvidia said last year it was ordering Arm Holdings from Japan's technology giant Softbank. The offer raised problems that Arm would abandon its neutral business model of licensing its chip designs to hundreds of tech businesses, including many of Nvidia's rivals.
Nvidia pledged to keep Arm's open licensing style and customer neutrality. In addition, it agreed to retain Arm’s headquarters in Cambridge, England and broaden its British personnel. The business has said the offer wouldn't be accomplished until early 2022 because it as well faces regulatory scrutiny from the U.S., China and the European Union.
Source: japantoday.com
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