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Nvidia's takeover of Arm is being investigated by UK competition authorities

The UK Competition and Markets Authority (CMA) intends to investigate Nvidia's recent $40 million acquisition of chip maker ARM.

Chris Kerr

January 7, 2021

1 Min Read

The UK Competition and Markets Authority (CMA) intends to investigate Nvidia's recent $40 million acquisition of chip maker ARM

Nvidia purchased the semiconductor and software design company in September last year for $21.5 billion in common stock and $12 billion in cash, but now the deal is being scrutinised by UK authorities over the effect it could have on competition in the UK. 

"The CMA is likely to consider whether, following the takeover, Arm has an incentive to withdraw, raise prices or reduce the quality of its IP licensing services to NVIDIA’s rivals," said CMA chief executive Andrea Coscelli. 

"The chip technology industry is worth billions and critical to many of the products that we use most in our everyday lives. We will work closely with other competition authorities around the world to carefully consider the impact of the deal and ensure that it doesn’t ultimately result in consumers facing more expensive or lower quality products.”

The CMA will begin its formal investigation later this year, and is currently inviting views on the impact of the deal from interested third parties as it begins to assess the merger. 

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2021

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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