Several months ago, Nvidia confirmed ARM’s acquisition of Softbank, which will pay $ 40 billion for the deal. However, such an agreement has not been finalized yet, and now, according to a new report, the European Union and the United Kingdom want to scrutinize such a deal.
According to This is a new report, The EU and the UK are preparing for such an inquiry, and conditions may be considered for the deal. The scrutiny comes after some personalities and companies announced that the merger would mean Nvidia’s monopoly on the market.
This research is in its infancy and has not even been registered in Brussels yet. The UK Competition and Markets Agency is currently compiling a statement from various companies to get their views on such a deal. In the past, Nvidia’s competitors have called for such a deal to be blocked, so such a request is likely to be included in their statement.
Last year, the ARM co-founder wrote in a letter to the British Foreign Affairs Committee that such an agreement would lead Nvidia to dominate the processor market and form another American monopoly on technology. ARM has issued design licenses to many companies, one of which is Nvidia, so Nvidia will be responsible for such licenses by acquiring ARM.
Nvidia CEO Jen Seon Huang has said in the past that the company maintains the ARM licensing model and that customers will continue to have access to it.
A company spokesman reacted to such a possible investigation and said he understood such a thorough investigation:
“The regulatory process is progressing as we planned. “We fully understand that governments and related regulators need to look at this deal in detail, because it is a significant contract.”
Although Nvidia has indicated that the ARM business model will not change, and Europe and the United Kingdom may approve such a deal with some changes or concessions, such conditions may be called into question in the future.
The giants of the tech world have in the past agreed to terms and conditions for mergers and acquisitions of companies, and over time have ignored them. For example, when Facebook took over WhatsApp in 2014, it reported a lack of communication between its messenger and Facebook users, an issue it later ignored.