+1-888-308-5802     
News Contact Us

UK competition watchdog to investigate $40Bn Nvidia-Arm deal

Author : Pankaj Singh | Published Date : 2021-01-08 

Britain’s competition regulator has recently announced plans to start the investigation of a $40 billion agreement signed by Nvidia Corp to acquire Arm Holdings. In September 2020, the computer game company inked a deal with SoftBank Group to take over Arm.

The CMA (Competition and Markets Authority) has reportedly cited that it was planning to consider whether Arm Holdings has an incentive to raise prices, withdraw, or reduce its IP licensing services quality to the rivals of Nvidia after the acquisition. The deal has raised various concerns about its potential impact on the long-standing position of Arm as a neutral supplier.

Arm Holdings has been offering intellectual property to Qualcomm, Apple, and other technology companies to develop chips that power smartphones. Nvidia has agreed to retain the open-licensing model of Arm and keep customer neutrality, which has formed a foundation to its success as an independent company as well as under the ownership of SoftBank.

People with knowledge of the matter have stated that Nvidia will install firewalls to ensure the safety of the confidential information of Arm Holdings’ customers or potential competitors, as well as prevent early access to its products. Additionally, the British government has been inspecting the deal, such as Nvidia’s commitments to keep the staff and head office of Arm in Cambridge, England. It could also choose to intervene on grounds like national security or public interest.

In 2016, SoftBank made similar pledges and persuaded the British government to permit the takeover of the leading technology company in the country. Sources have further added that the upcoming regulatory process will remain confidential, with the approval process expected to take nearly 18 months from the day of signing the deal.

Prior to the launch of the investigation process, the CMA invited views on the potential impact of the agreement on the competitors.

Source credit:

https://in.reuters.com/article/arm-holdings-m-a-nvidia-cma/uk-competition-watchdog-to-probe-nvidias-arm-takeover-idINKBN29B1QK

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Cyber Observer deploys new updates to reduce cybersecurity blind spots

Published Date: 2021-01-20         Author: Pankaj Singh

Israel-based leading internet security solutions provider Cyber Observer has reportedly introduced new updates to its renowned platform that allows CISOs and other security management teams to acquire new, unified, and continuous visibility regarding their cybersecurity tools. For those uninitiat... Read More

MFine secures USD 16 million in funding round led by Heritas Capital

Published Date: 2021-01-19         Author: Pankaj Singh

MFine, an Indian health-care startup, has reportedly raised USD 16 million from a funding round that was led by Singapore-based private equity firm Heritas Capital. Sources with knowledge of the matter stated that the funding round also witnessed participation from Alteria Capital, BEENEXT, SBI Ven ... Read More

Vonage teams up with Wall Street English to drive digital classrooms

Published Date: 2021-01-18         Author: Pankaj Singh

New Jersey-based leader in cloud communications Vonage has reportedly entered into a joint venture agreement with one of the prominent English language education service providers Wall Street English. As per the agreement, Wall Street English will leverage Vonage’s Video API solutions to power... Read More

© 2021 Fractovia. All Rights Reserved