NVIDIA announced last September that it would buy Arm from Japanese holding company SoftBank for $ 40 billion. Since then, the deal has been under the scrutiny of government agencies around the world. On December 2, the US Federal Trade Commission (FTC) filed a lawsuit to block the acquisition. The department believes that the deal will allow NVIDIA to control technologies and solutions that rival companies rely on when developing their own products. Thus, NVIDIA will have every opportunity to suppress competition in the global markets.
“The FTC’s legal action should send a signal to everyone that we will act aggressively to protect critical markets from illegal mergers that have devastating consequences for future innovation,” the FTC said.
The agency’s statement lists the most vulnerable innovative products and solutions. For example, advanced driver assistance systems that offer features such as automatic lane change, lane keeping, highway entry and exit, and collision avoidance. Also mentioned are DPU SmartNIC data processing units – advanced networking equipment used to improve the security and efficiency of data centers, as well as CPUs for cloud service providers. All of these new products use Arm technology.
NVIDIA has already responded to the FTC lawsuit. The company stands ready to demonstrate that the deal will benefit the industry and foster competition.
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