FTC sues to prevent Nvidia’s chip manufacturing merger

The US Federal Trade Commission filed to block Nvidia Corp. acquisition of Arm Ltd, a UK chip design provider for US$40 billion. According to the FTC, this ‘vertical deal would give one of the largest chip companies control over the computing technology and designs that rival firms rely on to develop their own competing chips.’ The FTC alleges that the merger would create a company with ‘the means and incentive to stifle innovative next-generation technologies, including those used to run data centers and driver-assistance systems in cars.’