Some of the most popular technology companies of the world have raised concern over Nvidia’s takeover of Arm Ltd. Companies like Qualcomm and Microsoft have complained that the deal will harm competition. They have urged antitrust officials to intervene as the USD 40 billion deal is related to the business that is very important to their business. Alphabet Inc.’s Google is also among those who are not in the favour of the deal. According to people familiar with the development, at least one of the firms wants the deal to be scrapped.
This is because the deal would put Nvidia in control over a critical supplier give licenses to essential chip technology to some of the tech firms. U.K.-based Arm licenses chip designs of companies like Apple, Samsung, Intel, Amazon, and Huawei. This is why the company has earned the status of Switzerland of the industry. Instead of competing against semiconductor companies, Arm licenses chip designs and related software code to all these companies. Those who have approached regulators against the deal feel that if Nvidia owns Arm, it could raise the cost of access and also limit rival’s access to the technology. However, Nvidia has argued that the purchase in itself is proof that it is not in a position to mess the neutrality. However, the companies are not convinced of this argument.
Nvidia spokesperson said they are confident that both the companies and regulators will be convinced with their plan. “As the review process will proceed, they will realize the benefits of our deal,” the spokesperson said in a statement. He added that the deal will help Arm licensees like Google, Microsoft and Qualcomm grow their business and expand into new markets. However, before the deal is finalized, Nvidia will have to go through an extensive review process by the regulator in the United States, the United Kingdom, European Union, and China. Antitrust officials are in the process of reaching out to those firms they believe might be affected because of the deal.