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UK's Competition Authority to Investigate Nvidia's Takeover of Arm
- klelatti 6y ago> The CMA will look at the deal’s possible effect on competition in the UK. The CMA is likely to consider whether, following the takeover, Arm has an incentive to withdraw, raise prices or reduce the quality of its IP licensing services to NVIDIA’s rivals. This seems to hit the nail on the head. Nvidia has clear incentives to "withdraw, raise prices or reduce the quality of its IP licensing services to NVIDIA’s rivals."
- Nokinside 6y agoThere is already high probability that China refuses to approve the deal. In 2018 Chinese refused Qualcomm's NXP takover. It was $44B deal. The small print in the takeover says: > The proposed transaction is subject to customary closing conditions, including the receipt of regulatory approvals for the U.K., China, the European Union and the United States. Completion of the transaction is expected to take place in approximately 18 months. In other words, regulators in China, EU, UK and US must approve it.
- klelatti 6y agoAgreed particularly given US control can only make access to Arm IP more difficult for Chinese firms.