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U.S. FTC sues to block Nvidia deal to buy Arm -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Nvidia’s logo can be seen at Santa Clara headquarters, California. February 11, 2015. REUTERS/Robert Galbraith

Stephen Nellis, David Shepardson

SAN FRANCISCO/WASHINGTON -The U.S. Federal Trade Commission filed a lawsuit on Thursday against Nvidia Corp (NASDAQ;) to prevent the planned acquisition by Nvidia of British chip designer provider Arm for $50 billion.

According to the FTC, the vertical agreement would allow one of the biggest chip companies to control computing technology and design that rivals use in developing their chips.

Arm, Britain’s largest tech company and sold to SoftBank Japan in 2016, licensed its blueprints for major chipmakers like Apple (NASDAQ), Qualcomm (NASDAQ) or Samsung Electronics (OTC), which underpins the global smartphone ecosystem.

Nvidia stated that “as the FTC processes move to the next stage, we will continue working to show that the transaction will be beneficial to the industry and encourage competition.” Arm refused to comment.

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