The European Commission is the executive arm and has initiated an investigation into the matter. Nvidia’sSoftBank has acquired U.K.-based chip designer Arm. Nvidia announces more than a year agoIt wants to purchase Arm for $40 Billion.

The probe announced by the Commission on WednesdayThis is the latest setback to chip companies that have said they would not be buying it. deal is unlikely to be completedBefore the March 2022 deadline.

The Commission expressed concern that Arm’s neutral chip designs could be restricted by the merger and could result in higher prices and less innovation for the semiconductor sector.

“Whilst Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in datacentres, automotive and in internet of things,” Executive Vice-President Margrethe Vestager said in a statement.

She added that “our analysis has shown that Arm may be subject to restricted access or diminished IP rights, which could have distorting consequences in markets where semiconductors use.”

Regulators in China, U.K., and the U.S. will also scrutinize the takeover.

CNBC was told by a spokesperson from Nvidia that they are “working closely with European Commission during the regulatory process”.

We look forward to having the chance to answer their concerns.