American multi-national corporation Qualcomm is objecting Nvidia’s acquisition of Arm and has told regulators around the world that the company is against the purchase.
Nvidia is expected to shell out $40 billion for British chip designer Arm.
According to sources familiar with the situation, Qualcomm has told the Federal Trade Commission, the European Commission, the U.K.’s Competition and Markets Authority and China’s State Administration for Market Regulation that it has concerns about the deal.
The FTC’s investigation on the acquisition has moved to a “second phase” and the U.S. regulator has asked SoftBank, Nvidia and Arm to provide it with more information.
According to sources, the FTC has asked SoftBank, Nvidia and Arm to provide it with more information.
During this second phase, the FTC will also engage with other companies who may have relevant information that could help it to make a decision, they added.
Nvidia made a statement to CNBC and said that the company is confident regulators will
see the benefits of the acquisition.
“You’re looking at a very thorough, a very painful, and a very long investigation,” one of the sources told CNBC however.
Sources have said that Qualcomm is against the Nvidia takeover because it thinks there’s a very high risk that Nvidia could become a gatekeeper of Arm’s technology and prevent other chipmakers from using Arm’s intellectual property.
“This combination has tremendous benefits for both companies, our customers, and the industry,” said Nvidia CEO Jensen Huang assured when the deal was announced.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.