Nvidia's ARM takeover is subject to a national security investigation
Nvidia's ARM takeover is subject to a national security investigation

British ministers are expected to order an in-depth investigation into Nvidia's planned 30 billion pound ($40 billion) takeover of British chip designer ARM over antitrust and national security concerns, the Sunday Times reported, in a move that threatens to derail the deal.

According to the report, the UK Minister for Digital, Culture, Media and Sport, Nadine Doris, is expected to task the Competition and Markets Authority (CMA) with an investigation into the second phase of the deal next week.

The US company agreed to buy ARM from Japan's SoftBank in September 2020, which was met with strong opposition from politicians, competitors and customers.

ARM technology is used by competing chip manufacturers such as Qualcomm, Samsung, and Apple to make processors. Chip makers fear that Nvidia-owned ARM will not maintain operator neutrality.

The US company said these concerns are unfounded. However, the UK Competition and Markets Authority sounded alarm bells about the deal in August when it said the combined company could reduce competition in technology-dependent markets around the world.

The UK Competition and Markets Authority has warned that the deal could allow the US company to cut off competitors' access to ARM's ubiquitous and energy-saving design in technologies from data centers to smartphones.

UK investigating NVIDIA's ARM deal

The Sunday Times said Doris must accept the competition decision issued by the Capital Markets Authority. He has the final say in national security.

The European Commission opened a lengthy investigation into the deal last month. This deal, she said, could face higher prices, fewer options and less innovation. Nvidia made concessions at the start of an EU review of the deal.

The government is investigating the Competition and Procurement Agency's findings and assessing the potential impact of the deal on national security.

A complete and comprehensive examination can take up to six months. The government can then block, approve or approve the acquisition through specific contracts.

Nvidia said it is working with the UK government to resolve these issues. With Phase II implementation, we can show how this agreement can help expedite MRA.

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