In particular, Nvidia has seen rapid growth in products used for computing in artificial intelligence, computer-assisted driving and advanced networking applications that utilize Arm intellectual property. Nvidia is a market leader in the development of graphics processing units (GPUs) and has introduced or acquired complementary products that utilize microprocessors that use Arm technology. Nvidia, a California-based semiconductor manufacturer, announced its proposed acquisition of Arm in September 2020. Nvidia’s Proposed Acquisition of the ‘Switzerland’ of Semiconductors The FTC’s challenge, along with recent FTC actions and policy changes, sends a signal to expect ongoing aggressive enforcement in technology markets, substantial scrutiny of vertical transactions that could threaten innovation and tactical use of the FTC’s administrative procedural powers. These ongoing global investigations have prevented the deal from closing, allowing the FTC to challenge the transaction with its administrative process without seeking a preliminary injunction in federal court, a strategy the FTC also used earlier this year in its challenge of Illumina’s proposed acquisition of Grail, another vertical transaction. The Commission, which voted unanimously in favor of challenging the transaction, stated it is “suing to block the largest semiconductor chip merger in history to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies.” 1 Since its announcement in late 2020, the transaction has faced scrutiny around the world in multiple investigations, including before the European Commission (EC), UK Competition and Markets Authority, Korea Fair Trade Commission, Japan Fair Trade Commission and China’s State Administration for Market Regulation (SAMR). On December 2, 2021, the Federal Trade Commission (FTC or Commission) filed an administrative complaint challenging Nvidia’s $40 billion acquisition of Arm Ltd., a subsidiary of the Softbank Group.
0 kommentar(er)
