The Competition and Markets Authority (CMA) has now been instructed to carry out a 24-week 'Phase 2' investigation. This follows on from a 'Phase 1' investigation that was ordered in April 2021 (see UK intervenes in Nvidia-ARM deal on national security grounds ). However, the announcement only made a minor dent in Nvidia's stock price.
In the Phase 1 report now published, the CMA found the transaction raises the possibility of a “substantial lessening of competition across four key markets” - data centres, Internet of Things, the automotive sector and gaming applications. The full Phase One report has been published today.
In addition, following the consideration of evidence gathered from departments across government, the Secretary of State also deems that the interest of national security continues to be relevant and should be subject to further investigation.
Digital Secretary Nadine Dorries said: "Arm has a unique place in the global technology supply chain and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps."
The CMA now has 24 to 32 weeks to prepare its report and advice.
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