Saturday, August 21st 2021

NVIDIA-Arm Acquisition Raises "Significant Competition Concerns:" UK Competition Regulator

The proposed $40 billion acquisition of Arm Holdings Plc from SoftBank by NVIDIA raises "significant competition concerns," says the Competition and Markets Authority (CMA). The scathing report by the UK's competition regulator goes on to say that the merger will stifle innovation. "We're concerned that NVIDIA controlling Arm could create real problems for NVIDIA's rivals by limiting their access to key technologies, and ultimately stifling innovation across a number of important and growing markets. This could end up with consumers missing out on new products, or prices going up," it reads.

In its first reaction, NVIDIA sought time to address CMA's concerns. "We look forward to the opportunity to address the CMA's initial views and resolve any concerns the Government may have. We remain confident that this transaction will be beneficial to Arm, its licensees, competition, and the UK," the company said. Although a subsidiary of Japan's Softbank, the report by UK's competition regulator does have some bearing on the fate of Arm, which remains headquartered in the UK.
Sources: UK Competition and Markets Authority (PDF), James Titcomb (Twitter)
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78 Comments on NVIDIA-Arm Acquisition Raises "Significant Competition Concerns:" UK Competition Regulator

#1
INSTG8R
Vanguard Beta Tester
Can’t disagree with that sentiment…
Posted on Reply
#2
claes
Missing a quotation mark in the first paragraph :)
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#3
dyonoctis
Correct me if I'm wrong, but even if the deal doesn't get trough, there's nothing that's keeping Nvidia from getting on with it, and making their own custom arm cores ? They don't really "need" ARM, it's more the "desire" to own the company ?
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#4
TheLostSwede
dyonoctisCorrect me if I'm wrong, but even if the deal doesn't get trough, there's nothing that's keeping Nvidia from getting on with it, and making their own custom arm cores ? They don't really "need" ARM, it's more the "desire" to own the company ?
Yes, anyone can pay for architecture license from ARM, it allows you to do whatever you want within the terms of the license.
You can find some information about how it works here
www.anandtech.com/show/7112/the-arm-diaries-part-1-how-arms-business-model-works/3
Posted on Reply
#5
Patriot
dyonoctisCorrect me if I'm wrong, but even if the deal doesn't get trough, there's nothing that's keeping Nvidia from getting on with it, and making their own custom arm cores ? They don't really "need" ARM, it's more the "desire" to own the company ?
Yup, the only reason for nvidia to own arm is to direct the development of future cores and force nvidia gpus into arm.
Posted on Reply
#6
cryohellinc
I hope this deal will be banned altogether and ARM will stay an independent company.

No matter what Nvidia says - they will limit the market in one way or another. Independent ARM is good for both the industry and the consumer.
Posted on Reply
#7
kruk
We remain confident that this transaction will be beneficial to Arm, its licensees, competition, and the UK
Says a company that will use any means necessary to hurt the competition and vendor lock-in consumers ... :shadedshu:
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#8
ARF
The nature of this takeover is hostile (there is a very pronounced conflict of interests between all the involved parties and market players).
Of course, it won't be given the green light.
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#9
lynx29
cryohellincI hope this deal will be banned altogether and ARM will stay an independent company.

No matter what Nvidia says - they will limit the market in one way or another. Independent ARM is good for both the industry and the consumer.
Nvidia does what AMDon't

mmm Freesync and FSR, smells lovely
Posted on Reply
#10
Bones
Be it crypto, folding, crunching...
They'll profit from it all.
Posted on Reply
#11
lynx29
BonesBe it crypto, folding, crunching...
They'll profit from it all.
When the mass famines and upheaval from said mass famines begin (climate change caused by humans or not humans, it doesn't matter anymore as its to late to do anything about it), profits won't matter anymore anyway.

Short term greed blinds them all. huhuhu
Posted on Reply
#12
ARF
lynx29When the mass famines and upheaval from said mass famines begin (climate change caused by humans or not humans, it doesn't matter anymore as its to late to do anything about it), profits won't matter anymore anyway.

Short term greed blinds them all. huhuhu
The thing is that they have been using the mankind as a working force to mine gold since ancient times (today to gain higher and higher profits).
Even Elon Musk's idea for colonising Mars is actually to make profit on that planet...

It's called Anunnaki and we are their creations.
Posted on Reply
#13
z1n0x
Nvidia make good products. Their business practices are another matter entirely.

The short sightedness of UK and EU by allowing the ARM IP to leave Europe, still amazes me to this day.
Posted on Reply
#14
ARF
z1n0xNvidia make good products.
If only can they make better image quality, something like crisp images, Radeon Image Sharpening kind of thing, Matrox' legacy image quality, something.

Even today, the GeForce's image quality is quite poor compared to Radeon's.
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#15
maxfly
Consolidation seems to be the the way business is and has been geared for many many years in tech. I know this isn't a popular view but i don't think this is going to stop ngreedia from finalizing the deal. They will find a way either through the court system or by making agreements. I hope they fail but im not optimistic.
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#16
ARF
Consolidation between two competitors against others, maybe, but consolidation between a client and a supplier against the likes of many others, no.
Posted on Reply
#17
Vayra86
lynx29When the mass famines and upheaval from said mass famines begin (climate change caused by humans or not humans, it doesn't matter anymore as its to late to do anything about it), profits won't matter anymore anyway.

Short term greed blinds them all. huhuhu
Yeah but the famine won't be hitting them either ;)
z1n0xNvidia make good products. Their business practices are another matter entirely.

The short sightedness of UK and EU by allowing the ARM IP to leave Europe, still amazes me to this day.
Its another one to add to a growing list, I suppose, of things that amaze me in the EU. At the same time its two dozen countries trying to work together but not really. Not easy. And we, as Europeans have in part ourselves to blame for it with all the nationalist sentiments. Its not helping us, but hey, time will tell.

I'm all for moving more control over all of this to the EU. Many national governments are pretty rotten, and ours right now (Netherlands) is a fine example. And over time, the brain drain is moving to EU - as in, the better politicians, policy makers, etc. Its the only logical path really because the circle of influence is much bigger.
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#18
mtcn77
This deal has been flying under the radar of a previous deal - the deal with SoftBank - which fell through the day SoftBank risked the company's immediate future, so they are not 'transferrable' among holding companies since the ground of the previous sale has dissolved its terms. SoftBank had insured this would be a deal to the benefit of the company(by doubling the workforce). Now, that they risk its future, I leave this quote if you would think these two deals fit in the same bill;
"This is a company I always admired for the last 10 years," Masayoshi Son, chairman and chief executive of SoftBank, told reporters in London Monday. "This is the company I wanted to make part of Softbank. I am so happy"

On whether the deal will face opposition, the CEO said the deal will close quickly because Softbank "does not operate any competitive business against ARM. This will be very straightforward"
BonesBe it crypto, folding, crunching...
They'll profit from it all.
The problem is they 'engineered' their own stock crash by not reporting to the FTC that the quarterly crypto sales were significant in their earnings report.
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#19
Recus
UK doesn't see a problem to sell Imagination Technologies and Newport Wafer Fab to communist China but ARM deal is rising significant competition concerns. lel
.
ARFIf only can they make better image quality, something like crisp images, Radeon Image Sharpening kind of thing, Matrox' legacy image quality, something.

Even today, the GeForce's image quality is quite poor compared to Radeon's.
Why you lying?
Posted on Reply
#20
R-T-B
RecusWhy you lying
I agree with this. The image quality argument has been dead for generations.
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#21
Tardian
Some strong ARM tactics from the Europeans?
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#22
mechtech
Not a fan of this deal. Something makes me uneasy about it.
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#23
Minus Infinity
More great news, this takeover needs to be stopped from ever happening.
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#24
ARF
R-T-BI agree with this. The image quality argument has been dead for generations.
Image quality is one of the most if not the most important aspect in graphics cards.

Radeon Settings -> Radeon Image Sharpening:
I recommend that you read more and understand the matters instead of writing empty pro-Nvidia fanboy words in the comments sections of the forums.
It is a well researched area with a lot of information. Just read.



It works even in Microsoft's own browser - the Edge:

Edge with Radeon Image Sharpening:




Ordinary another browser without Radeon Image Sharpening:




Do you see how much crisper the first image is?

Well, that is very similar to the difference between the overall image quality that is rendered on an Radeon and on a GeForce.
Posted on Reply
#25
maxfly
Ehhh, not really. Im on my phone and they both look the same. The top one is bigger by a smidge.
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