Britain’s competition regulator will begin to look into Nvidia Corp’s $40 billion deal in order to buy Arm Holdings, a UK-based chip designer.
The Competition and Markets Authority said that “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.”
Nvidia and Softbank Group from Japan had come up with a deal for Arm, a few months ago in September.
The British government has been criticised for the deal, as well as commitments from Nvidia keep Arm’s office and staff in Cambridge, eastern England.
Arm had been sold to Softbank in 2016 once the company had pledged in order to keep the company’s headquarters in Cambridge and grow employment.
Arm’s energy-efficient architecture supports processors which have been made by Apple, Samsung, Qualcomm among many others, which makes the technology ever-present in smartphones and many other products.
The CMA said that it will be inviting in views based on the reaction of the deal on the rivalry.