NVIDIA, who bought the ARM company last year, will be investigated by the European Union. The preliminary assessment is over.
NVIDIA purchased ARM, the world’s largest chip design company, last year. But the process is still not complete. ARM is of great importance in the technology sector, especially in mobile devices. It licenses most of the processors in the devices we use and designs it personally. After NVIDIA takes over the company, it will have increased its strength in many sectors, from the smartphone to the Internet of Things (IoT).
Tech companies are not happy about this at all. They worry that NVIDIA will discriminate against them negatively by using its monopoly. Previously, the UK had NVIDIA-ARM agreement. The European Commission has now launched a similar investigation.
EU opens competition investigation into NVIDIA-ARM deal
According to Reuters, NVIDIA reported his attempt to take over ARM to the European Commission. In this regard, the Commission has started a preliminary evaluation process, which is expected to end on 27 October. But the process doesn’t stop there. Sources told Reuters the European Commission will launch a four-month investigation after a preliminary investigation.
Speaking to Reuters on this topic, and NVIDIA spokesman said the editing process was conducted in secret. He added that the acquisition will be beneficial in terms of increasing competition and innovation. The company said in an earlier statement that it expects the acquisition to be completed within 18 months. NVIDIA CEO Jensen Huang stated that the process will take a little longer.
NVIDIA pledges to maintain ARM’s neutrality
Most tech companies, notably Samsung, Tesla, Amazon, Google and Qualcomm, are against the deal for competitive reasons. However, after NVIDIA purchased ARM, the company promised it would not compromise its neutrality.
The deal between SoftBank, the current owner of ARM, and NVIDIA is expected to be completed by the end of 2022 at the latest. If all goes well, a new era will dawn in the chip design industry.