U.S. Federal Trade Commission Sues to Block Nvidia's Planned Arm Acquisition

The United States Federal Trade Commission today announced that it has filed a lawsuit to block Nvidia from acquiring Arm in a deal worth $40 billion.

arm logo blue bg
According to the FTC, the deal would give Nvidia, one of the largest chip companies, control over computing technology and designs that rival firms rely on to develop competing chips. The FTC believes an acquisition would stifle "innovative next-generation technologies." The combined firm would be able to "unfairly undermine" Nvidia's competitors.

"The FTC 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," said FTC Bureau of Competition Director Holly Vedova. "Tomorrow's technologies depend on preserving today's competitive, cutting-edge chip markets. 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 that have far-reaching and damaging effects on future innovations."

Nvidia's plan to acquire Arm from SoftBank was announced back in September 2020. At the time, Nvidia said that it would use the Arm acquisition to create the "world's premiere computing company for the age of AI." Nvidia pledged to continue Arm's open licensing model and customer neutrality, but that hasn't convinced companies like Qualcomm, which has opposed the deal.

Qualcomm in February told the FTC, the European Commission, the UK Competition and Markets Authority, and China's State Administration for Market Regulation that it was against Nvidia's acquisition of Arm. Qualcomm said that Nvidia could become the gatekeeper for Arm's technology, which could prevent other chipmakers from using it.

Qualcomm has suggested that the only way that Nvidia could make its acquisition profitable would be to restrict Arm's technology. Arm licenses its chip technology to more than 500 companies, including Apple, so there are major concerns around potential licensing changes.

The FTC has sided with Qualcomm, and believes that the merger would give Nvidia "the ability and incentive" to use control over Arm technology to undermine its competitors and reduce competition. According to the lawsuit, an Nvidia acquisition of Arm could impact high-level advanced driver assistance systems, DPU SmartNICs for datacenter servers, and Arm-based CPUs for cloud computing service providers.

An acquisition would also give the merged company "less incentive to enable otherwise new beneficial features or innovations" if Nvidia decides that these innovations would harm Nvidia.

Popular Stories

Apple CarPlay Ultra instrument cluster themes 01

Apple's CarPlay Ultra Is Here – Does Your iPhone Support It?

Thursday May 15, 2025 5:17 am PDT by
Apple's recently announced CarPlay Ultra promises a deeply integrated in-car experience, but not all iPhone users will be able to take advantage of the new feature. According to Apple's press release, CarPlay Ultra requires an iPhone 12 or later running iOS 18.5 or later. This means if you're using an iPhone 11, iPhone XR, or any older model, you'll need to upgrade your device to access...
iPhone 17 Air Pastel Feature

iPhone 17 Air Battery Capacity and Weight Allegedly Revealed

Monday May 19, 2025 2:22 am PDT by
Apple is expected to launch an all-new ultra-thin iPhone 17 Air later this year, and while there have been plenty of rumors about the camera's overall design and thinness, we haven't heard any details about the device's weight and battery capacity until now. According to the leaker going by the account name "yeux1122" on the Korean-langauge Naver blog, the 6.6-inch iPhone 17 Air has a weight ...
Apple CarPlay Ultra instrument cluster themes 01

Apple's 'CarPlay Ultra' Experience Now Available

Thursday May 15, 2025 5:07 am PDT by
Apple today announced that its next-generation CarPlay experience, now dubbed "CarPlay Ultra" begins rolling out today, starting with Aston Martin vehicles. Subscribe to the MacRumors YouTube channel for more videos. CarPlay Ultra is now available with new Aston Martin vehicle orders in the U.S. and Canada. It will also be available for existing models that feature the brand's next-generation ...
CarPlay Ultra Climate Controls

Apple Says These Vehicle Brands Plan to Offer All-New CarPlay Ultra

Thursday May 15, 2025 8:13 am PDT by
Apple today announced the launch of CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. CarPlay Ultra features deep integration with a vehicle's instrument cluster and systems, built-in Radio and Climate apps, customizable widgets, and more. The interface is tailored to each vehicle model and automaker's identity, and drivers can also adjust...
WWDC 2025 Banner

Apple Announces WWDC 2025 Schedule, Including Keynote Time

Tuesday May 20, 2025 8:13 am PDT by
Apple today announced a more detailed schedule for its annual developers conference WWDC, which runs from June 9 through June 13. The schedule confirms that Apple's keynote will begin on Monday, June 9 at 10 a.m. Pacific Time, with a live stream to be available on Apple.com, in the Apple TV app, and on YouTube. During the keynote, Apple is expected to announce iOS 19, iPadOS 19, macOS 16,...
Apple Intelligence General Feature

Report: Apple's Next-Gen Version of Siri Is 'On Par' With ChatGPT

Monday May 19, 2025 9:00 am PDT by
Apple has big plans to improve Siri over the next few years, Bloomberg's Mark Gurman and Drake Bennett report. Some Apple executives are now reportedly pushing to turn Siri into a true ChatGPT competitor. A next-generation, chatbot version of Siri has reportedly made significant progress during testing over the past six months; some executives allegedly now see it as "on par" with recent...
iOS 18 Siri Personal Context

Apple Will Reportedly Be More Cautious About Announcing New Features Well in Advance

Sunday May 18, 2025 2:50 pm PDT by
Apple plans to mostly stop announcing new features more than a few months before they are ready to launch, according to Bloomberg's Mark Gurman and Drake Bennett. The pair of reporters revealed this noteworthy tidbit towards the bottom of a lengthy report about Apple's artificial intelligence shortcomings today. This alleged change in strategy comes after Apple was forced to delay its more...

Top Rated Comments

nwcs Avatar
45 months ago
It likely should be blocked. Too many of the recent mega acquisitions out there have increased prices and reduced competition.
Score: 42 Votes (Like | Disagree)
Blkant Avatar
45 months ago
Oh please let the block be successful. Such bs there isn’t more of an outcry over this.
Score: 39 Votes (Like | Disagree)
ghanwani Avatar
45 months ago
A regulator that is finally waking up.
Score: 38 Votes (Like | Disagree)
Apple Knowledge Navigator Avatar
45 months ago
Yikes. That’ll cost them an ARM and a leg!

?‍♂️ not even a chuckle?
Score: 25 Votes (Like | Disagree)
mdriftmeyer Avatar
45 months ago
? here. Hot buttery ? here.
Score: 24 Votes (Like | Disagree)
TinyMito Avatar
45 months ago
As much I love Nvidia GPU, please block Nvidia. I really don't want other competitor falter because of Nvidia changes the policy anti-competition practice and this potentially can harm Apple, Qual and many smaller companies from development for better technologies.

We need diversity in technologies. <- whatever that means.
Score: 16 Votes (Like | Disagree)