Nvidia-Arm merger would substantially lessen competition says U.K. government report

An Arm-Nvidia merger would involve a Substantial Lessening Of Competition (SLC) concludes the Competition and Markets Authority (CMA) in its Phase One review of the proposed merger for the Department  Of  Culture Media and Sport (DCMS).

The CMA’s conclusion states:

“The CMA has concluded that the Merger gives rise to a realistic prospect of an SLC within a market or markets in the United Kingdom (UK) and that the test for reference is met on competition grounds. The CMA found an SLC in:

(a) the supply of CPUs for datacentre servers globally;

(b) the supply of network-interface controllers enabling the transfer of data in datacentres globally;

(c) the supply of GPUs for  datacentre servers globally;

(d) the supply of SoCs for high performance internet-of-things applications globally;

(e) the supply of SoCs for automotive applications globally, in respect of:

(i) advanced driver assistance systems applications; and

(ii) information and entertainment applications; and

(f) the supply of SoCs for gaming consoles globally.

1.14 Remedies: The CMA concluded that it would not be appropriate to deal with the competition concerns identified by way of undertakings in lieu of a reference to a phase 2 investigation.”


Comments

2 comments

  1. Absolutely, Jack, it was an attempt to re-enact what Intel did with the PC industry and the x86 architecture. It was the mobile industry’s determination not to let a similar thing happen in the mobile world which gave Arm’s fair-to-all licensing business plan its popularity and success. It was surprising to see Arm’s CEO supporting the Nvidia takeover which would inevitably compromise the integrity of the Arm business plan.

  2. Monopolizing the industry was the inspiration for the merger. Nice try, Jensen. No cigar.

Leave a Reply

Your email address will not be published. Required fields are marked *

*