The U.S. Federal Trade Commission has moved into the second phase of its investigation of Nvidia’s $40 billion acquisition of the British semiconductor company Arm. The report comes on the same day that one of Nvidia’s chief competitors, Qualcomm, expressed concerns to regulators around the world.
Currently, Arm’s technology is licensed to over 500 companies and used in 95% of the world’s smartphones. That is, in large part, the basis for Qualcomm’s objections to the acquisition. The chip giant is concerned that Nvidia will use its purchase of Arm to restrict access to its technology, allowing Nvidia to pick winners and losers.
Regardless of the outcome, at this point, one thing is clear: the process of getting approval from American, European, and Chinese regulators will be a long one.