Nvidia buys ARM for $40 billion: Regulators try to block deal
In addition to the U.S. FTC, against the deal stand the authorities of the United Kingdom and the European Commission.
The U.S. Federal Trade Commission (FTC) plans to block the deal between Nvidia and ARM. It was assumed that the first will buy the second for $ 40 billion. However, U.S. authorities believe that the purchase will violate antitrust laws.
The FTC has already filed a lawsuit to block the deal on the grounds that it is anti-competitive and could potentially stifle innovation in various technology areas such as cloud technology, data centers and unmanned cars. The lawsuit says the deal could lead to less choice in the marketplace, higher prices, stifle progress and reduce innovation. This will hurt millions of Americans who use products based on ARM technology.
Recall, we wrote about possible effects of the purchase in detail in the article “NVIDIA and ARM merger will change the balance of power in the global processor market.
In addition to the U.S. Federal Trade Commission, the UK authorities and the European Commission oppose the deal.
Despite attacks from regulators, in general business at Nvidia is going well, its revenue in the third quarter rose 9% to $ 7.1 billion, while profit jumped by 84% to $ 2.46 billion.