The competition and market authority in the UK said on Wednesday that they intend to sue the NVDA of Nvidia Corp.
planned agreement for Arm Ltd. “The CMA is likely to consider whether Arm has an incentive to withdraw, increase prices or reduce the quality of its IP licensing services to NVIDIA’s competitors after the acquisition,” the CMA said in a statement. Andrea Coscelli, CEO of the CMA, said in the release that the investigation will try to ensure that Nvidia’s deal for Arm ‘does not ultimately lead to consumers getting more expensive or lower quality products. A formal investigation will begin later this year. Nvidia announced in September that it plans to buy Arm from Softbank Group Corp in a $ 40 billion deal in cash and stock. Nvidia shares are down 1.8% in trading on Wednesday morning. They have lost 4% over the past three months as the S&P 500 SPX,
added 10.5%.
