Amid global concerns, the United States Federal Trade Commission is taking action to successfully block chip company Nvidia from acquiring British chip technology provider Arm.
The FTC, made up of two Republicans and two Democrats, voted 4-0 in favor of challenging the proposed merger, arguing that the deal would exclude only Nvidia’s competitors because the company would be able to control computer technology and design once it acquired Arm.
According to the FTC, if Nvidia acquired Arm, the combined firm “would have the means and incentive to stifle innovative next-generation technologies, including those used to run data centers and driver-assistance systems in cars.”
There were mixed reactions to the deal from the semiconductor industry. While MediaTek and Broadcom supported the deal, other companies, including Qualcomm, expressed opposition to such a partnership.
For more information, read the original story in Reuters.