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FTC Asks For Documents In Nvidia’s $40B Takeover

 |  December 22, 2020

Nvidia’s takeover of British technology company Arm is being investigated by US regulators on competition grounds as rivals lobby against the deal, reported The Telegraph. The Federal Trade Commission (FTC) has demanded chipmaker Nvidia hand over documents related to the US$40 billion takeover ahead of an investigation that is expected to take months.

Watchdog chiefs have sent a second request to the company, a notice requiring it to dig out detailed material on which to base a competition investigation.

The FTC is likely to seek reams of internal documents and interview executives as part of the process. Nvidia’s opponents have warned the regulator that the deal could reduce competition by challenging Arm’s existing neutral licensing system.

Nvidia has stated that it expects regulatory scrutiny and that the deal may not be completed until 2022, 18 months after it was announced in September. Its chief executive Jensen Huang has pledged that Arm’s open business model will continue.

The company has not yet sought approval from regulators in Brussels, the UK, or China, all of which are likely to examine the tie-up closely. Nvidia is expected to file for clearance outside America next year. US regulators are likely to seek assurances from Nvidia that buying Arm will not limit others’ access to its technology.

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