UK government intervenes in Nvidia takeover of Arm, cites 'national security'

The UK's Competition and Markets Authority has been ordered to investigate Nvidia's proposed takeover of British company Arm, the company whose technology is used by Apple Silicon.

Nvidia's record-breaking $40 billion purchase of Arm has already been opposed by the likes of Qualcomm, and has been examined by the UK's Competition and Markets Authority (CMA). Now the UK wants to step up its CMA activity with a "phase one" investigation over national security concerns.

According to London's Evening Standard newspaper, the further action has been ordered by UK Culture Secretary Oliver Dowden.

"Following careful consideration of the proposed takeover of Arm," said Dowden, "I have today issued an intervention notice on national security grounds. As a next step and to help me gather the relevant information, the UK's independent competition authority will now prepare a report on the implications of the transaction, which will help inform any further decisions."

"We want to support our thriving UK tech industry and welcome foreign investment," he continued, "but it is appropriate that we properly consider the national security implications of a transaction like this."

The CMA had previously invited concerned parties to submit their views on the sale, and in its impact on local competition. The watchdog body will now more formally examine the details of the deal, and has until July 30 to make recommendations.

Arm is the Cambridge, UK-based technology company originally founded in the 1980s and now powering countless devices worldwide. Apple already uses it for M1 Macs, plus iPhones and iPads, and is expected to continue.

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28 Comments

saarek 16 Years · 1586 comments

About 3 years ago

Interesting, NVidia is a US based company so unlikely to be a threat. Although I suppose they could then sell it to whomever they want in the future.

crowley 15 Years · 10431 comments

5 years too late. The sale to SoftBank shouldn’t have been allowed.

GeorgeBMac 8 Years · 11421 comments

National Security is now being used as an excuse to promote Financial Security and profits.

But, at the same time, a certain nation began weaponizing its products and industries to attack and destroy its international competitors.

So, fair competition is no longer a thing that can be relied on.

Every developed country now realizes that. So, if the UK had not taken this "National Security" stance, others would have (and likely still will).

elijahg 18 Years · 2842 comments

crowley said:

5 years too late. The sale to SoftBank shouldn’t have been allowed.

That seemed to take pretty much everyone off-guard. I think if it was publicised a bit more at the time it never would have happened. These massive acquisitions by holding companies rarely turn out well for anyone except a couple of execs.

elijahg said:

crowley said:

5 years too late. The sale to SoftBank shouldn’t have been allowed.

That seemed to take pretty much everyone off-guard. I think if it was publicised a bit more at the time it never would have happened. These massive acquisitions by holding companies rarely turn out well for anyone except a couple of execs.

Equating the sales to Softbank versus NVIDIA is a False Analogy.
Softbank is a neutral Japanese holding and investment company.
NVIDIA is an aggressive U.S. tech company that, if they do not abuse the patents themselves, could be used as a tool to weaponize those patents in the name of "National Defense".