The FTC continues Nvidia to prevent it from becoming too powerful

When Nvidia sought to merge with Arm Limited, a key business in the computer chip industry, the FTC felt the need to intervene. And to a large extent also, prosecution is powerful. According to the own words of the FTC: This proposed agreement will distort the incentives of ARM in the flea markets and would allow the combined enterprise to unfairly undermine the competitors of NVIDIA.

To be clear, Arm Limited does not exactly provide people with computer chips — at least not directly. The company based in Tokyo grants design licenses to other companies. Many companies depend on Arm Limited, argues the FTC. A merger would give NVIDIA the means and motivation to stifle competition.

Because ARM technology is an essential input that allows competition between Nvidia and its competitors in several markets The FTC declaration reads, the complaint alleges that the proposed merger would give NVIDIA capacity and The incentive to use its control of this technology to undermine its competitors, reducing competition and ending at a reduced product quality, reduced innovation, higher prices and less choice, affecting the millions of Americans which benefit from ARM products, according to the complaint.

According to the FTC, the damage caused by this merger are not limited to PC game material. The safety and automotive industries, and even more, would felt all the weight of the merger. With all this information, FTC commissioners unanimously voted to stop the merger.

It was only in August of next year that trials will formally begin. What can you expect, the legal system can sometimes be slow. But if what the FTC says is true, its serious things — it's better to be meticulous.

It is unclear to what extent NVIDIA will fight this trial. But if Arm Limited is twice as much as the FTC claims... Yes, it's something that Nvidia would like to get their hands.