Setback for Nvidia’s $54 billion ARM bid as EU regulators open probe By Reuters

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© Reuters. FILE PHOTO: The emblem of expertise firm Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) – Nvidia (NASDAQ:) suffered a setback on Wednesday as EU antitrust regulators opened a full-scale investigation into its $54 billion bid for British chip designer ARM on considerations the deal may result in greater costs, much less alternative and decreased innovation.

Britain’s competitors company can also be probing the deal for the nation’s most necessary expertise firm, warning that it may harm competitors and weaken rivals.

Reuters reported the European Commission considered as inadequate concessions provided by the world’s largest maker of graphics and synthetic intelligence (AI) chips throughout its preliminary overview..

Nvidia has not disclosed what these are nevertheless it has beforehand mentioned it could keep ARM as a impartial expertise provider to sooth considerations from prospects such as Qualcomm (NASDAQ:) Inc, Samsung Electronics (OTC:) Co Ltd and Apple Inc (NASDAQ:).

The Commission mentioned it could resolve by March 15 whether or not to clear or block the deal.

“Whilst Arm and Nvidia do not directly compete, Arm’s IP is an important input in products competing with those of Nvidia, for example in datacentres, automotive and in Internet of Things,” EU competitors chief Margrethe Vestager mentioned in an announcement.

“Our analysis shows that the acquisition of Arm by Nvidia could lead to restricted or degraded access to Arm’s IP, with distortive effects in many markets where semiconductors are used,” she continued.

ARM prospects Broadcom (NASDAQ:), MediaTek and Marvell (NASDAQ:) are backers of the deal.

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