Alphabet Inc.’s Google, Microsoft, and Qualcomm are among companies protesting Nvidia $40 billion deal for Arm Ltd. and asking antitrust officials to intervene, Bloomberg News reports, citing “people familiar with the process who asked not to be identified because they weren’t authorized to speak publicly.”
The acquisition would give Nvidia control over a critical supplier that licenses essential chip technology to the likes of Apple Inc., Intel Corp., Samsung Electronics Co., Amazon.com Inc. and China’s Huawei Technologies Co.
U.K.-based Arm is known as the Switzerland of the industry because it licenses chip designs and related software code to all comers, rather than competing against semiconductor companies. The concern is that if Nvidia owns Arm, it could limit rivals’ access to the technology or raise the cost of access.
“As we proceed through the review process, we’re confident that both regulators and customers will see the benefits of our plan to continue Arm’s open licensing model and ensure a transparent, collaborative relationship with Arm’s licensees,” an Nvidia spokesperson said in a statement. “Our vision for Arm will help all Arm licensees grow their businesses and expand into new markets.” Microsoft, Qualcomm and Arm declined to comment. Google didn’t immediately respond to a request for comment. CNBC reported Qualcomm’s objections earlier.
Before the deal can close, Nvidia must get through a long review process by antitrust officials in the U.S., U.K., European Union and China.
MacDailyNews Take: This deal could take years to materialize, if it ever does.