UK likely to block Nvidia’s purchase of Arm, will carry out national security review

Nvidia is a brand that is synonymous with gaming and creative work, with it manufacturing some of the best graphic cards currently available in the market. To broaden its business purview, it had signed a definitive agreement to purchase Arm, which is a semiconductor and software design company that develops the widely-used ARM architecture.

Even though the agreement was signed over a year ago, back in September 2020, both the firms are still facing various regulatory loopholes, like an investigation by the European Commission. Now, another roadblock has presented itself in the form of a national security review by the United Kingdom.

The Competition and Markets Authority of the UK according to Bloomberg has been instructed to carry out a national security review of the Arm purchase. The authority has already conducted an initial report, which states that the sale would result in “substantial lessening of competition across four key markets.” These markets would include data centres, Internet of Things devices, the automotive sector and gaming applications.

To appease regulators and other authorities, Nvidia has promised that it will maintain Arm’s current neutral licensing model.

The Competition and Markets Authority led investigation is said to take 24 weeks along with additional eight weeks of extension.

“Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps,” said Digital Secretary Nadine Dorries in a statement.

To recall, the European Commission had earlier opened an investigation, which primarily focused on potential anti-competitive measures.

Nvidia back in September 2020 had announced that the acquisition was scheduled to be completed within 18 months. However, the ongoing investigations might delay the overall acquisition timeline. Even Nvidia CEO, Jensen Huang in August commented that the deal may take a little bit longer than expected.

The post UK likely to block Nvidia’s purchase of Arm, will carry out national security review appeared first on BGR India.

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