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

Author: EIS Release Date: Aug 27, 2021

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).

 

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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.”