From PC World: Arguing that innovation and competition would be harmed, the Federal Trade Commission on Thursday sued to scuttle a proposed purchase of Arm by graphics-giant Nvidia.
The federal agency charged with anti-trust enforcement said it made its decision to intervene in order to protect key technologies for data centers and driver-assisted cars, among other essential semiconductors.
“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,” FTC Bureau of Competition Director Holly Vedova said in a release. “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 obviously disagreed, saying its purchase of Arm would benefit the industry.
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