Competition & Markets Authority
CMA to investigate NVIDIA’s takeover of Arm
The CMA is inviting interested third parties to provide initial views on the anticipated acquisition of Arm by NVIDIA.
This is an early opportunity for interested third parties to comment on the impact that the takeover could have on competition in the UK, in advance of the Competition and Market Authority’s (CMA) formal investigation starting later this year.
US-based chip designer and producer NVIDIA Corporation (NVIDIA) plans to purchase the Intellectual Property Group business of UK-based Arm Limited (Arm) in a deal worth $40 billion. Arm develops and licenses intellectual property (IP) and software tools for chip designs. The products and services supplied by the companies support a wide range of applications used by businesses and consumers across the UK, including desktop computers and mobile devices, game consoles and vehicle computer systems.
The CMA will look at the deal’s possible effect 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.
Andrea Coscelli, chief executive of the CMA, yesterday said:
“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’s remit, by law, is to assess the potential impact of a merger on competition. It cannot consider other potential effects that a merger might have, for example on employment or industrial strategy. Any national security concerns would be a matter for the UK Government, which can issue a public interest intervention notice, if appropriate.
The CMA is now inviting views on the impact of the deal on competition to assist with its ongoing assessment of the merger. Further opportunities to submit views will be provided once the CMA begins its formal Phase 1 investigation in due course.
Information relating to the CMA’s investigation is available on the NVIDIA/Arm merger inquiry case page.
Latest News from
Competition & Markets Authority
CMA lifts the lid on impact of algorithms20/01/2021 12:20:00
The CMA has published new research on algorithms, showing how they can reduce competition in digital markets and harm consumers if they are misused.
Metallurgy firms abandon merger during CMA investigation19/01/2021 12:20:00
The CMA no longer intends to refer the merger of TTI and Tronox to an in-depth investigation, after Tronox’s announcement to abandon the deal.
CMA breaks up motor parts merger13/01/2021 12:20:00
The CMA will require TVS Europe Distribution to sell 3G in order to protect competition in the commercial vehicle and trailer parts sector.
CMA to investigate Google’s ‘Privacy Sandbox’ browser changes08/01/2021 14:25:00
The CMA has opened an investigation into Google’s proposals to remove third party cookies and other functionalities from its Chrome browser.
Metallurgy buyout raises competition concerns05/01/2021 09:10:00
The CMA has found that Tronox’s anticipated purchase of TTI raises competition concerns in the supply of chloride slag and titanium dioxide pigment.
CMA secures affordable supply of key bipolar drug21/12/2020 10:20:00
The CMA has accepted legally binding commitments from Essential Pharma to continue supplying a key bipolar drug at an affordable price for at least 5 years.
CMA publishes final report in funerals market investigation21/12/2020 09:20:00
The CMA has published the final report on its in-depth market investigation into funeral services, confirming its remedies for the sector.
Construction suppliers fined £15m for breaking competition law18/12/2020 12:20:00
The CMA has fined 2 major suppliers to the construction industry more than £15m for illegally colluding to reduce competition and keep prices up.