Microsoft and Google object to Nvidia’s $40bn Arm takeover

Nvidia has agreed to pay $40bn for the company

Credit: AFP

Microsoft and Google have objected to the $40bn (£29bn) takeover of British microchip company Arm by Nvidia, fearing that the deal will harm competition.

The two tech giants, as well as the US chip company Qualcomm, are asking antitrust investigators to intervene and potentially block the deal.

The objections will add to pressure on regulators, which are already assessing whether Nvidia’s purchase of Arm from Japan’s SoftBank could hurt competition.

America’s Federal Trade Commission and the UK’s Competition and Markets Authority are already scrutinising the deal and have demanded documents from Arm, Nvidia and SoftBank as well as several rivals.

Nvidia has said the takeover, which was announced five months ago, could take 18 months to be completed, given the regulatory hurdles it must jump. 

Arm’s designs are used in billions of chips around the world but the deal’s opponents fear that the company’s neutral licensing model could change under Nvidia’s ownership, potentially granting the company special access to its designs or raising prices for consumers.

The deal has also raised concerns about Arm’s future in the UK, where it is seen as a technology leader and employs thousands of highly-skilled workers.

Nvidia said: “As we proceed through the review process, we’re confident that both regulators and customers will see the benefits of our plan to continue Arm’s open licensing model and ensure a transparent, collaborative relationship with Arm’s licensees. 

“Our vision for Arm will help all Arm licensees grow their businesses and expand into new markets.”

Qualcomm, Google and Microsoft did not comment. Qualcomm’s objections were first reported by CNBC while Microsoft and Google’s were first reported by Bloomberg.