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FTC To Block Nvidia-Arm Deal To Protect Critical Infrastructure Markets From Illegal Vertical Merger

The Federal Trade Commission announced it has sued to block Nvidia Corp.'s $40 billion acquisition of Arm Ltd. to prevent a chip conglomerate from stifling the innovation pipeline for next-generation technologies. As per the complaint, the acquisition will harm competition in three worldwide markets in which Nvidia competes using Arm-based products.

"This proposed deal would distort Arm's incentives in chip markets and allow the combined firm to unfairly undermine Nvidia's rivals. The FTC's lawsuit should send a strong signal that we will act aggressively to protect our critical infrastructure markets from illegal vertical mergers," said FTC Bureau of Competition Director Holly Vedova.

The complaint names Nvidia, Arm, and Arm owner Softbank Group Corp. The trial is scheduled to begin on August 9, 2022.

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