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.
Arm processors are at the heart of iPhones, iPads, and 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.
Stay on top of all Apple news right from your HomePod. Say, "Hey, Siri, play AppleInsider," and you'll get latest AppleInsider Podcast. Or ask your HomePod mini for "AppleInsider Daily" instead and you'll hear a fast update direct from our news team. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments.
Arm processors are at the heart of iPhones, iPads, and 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.
Stay on top of all Apple news right from your HomePod. Say, "Hey, Siri, play AppleInsider," and you'll get latest AppleInsider Podcast. Or ask your HomePod mini for "AppleInsider Daily" instead and you'll hear a fast update direct from our news team. And, if you're interested in Apple-centric home automation, say "Hey, Siri, play HomeKit Insider," and you'll be listening to our newest specialized podcast in moments.
Comments
ok, a bit too optimistic for this early in the morning but we can only hope we're moving to a future similar to what Star Trek envisioned where we can all just get along.
Why would the UK be worried?
Nvidia Stock Ownership - Who Owns Nvidia in 2021? | WallstreetZen
Seems to be mostly US institutional ownership, and the commentary I've read suggests that China are removing nVidia technology from the state computer estate, and are not in favour of this deal as it will place ARM under the control of a company who has to abide by US economic sanctions.
On top of that we now have first hand experience of US government industrial abuse of third parties in sovereign nations who have been severely impacted by Trump's executive order frenzy. The UK itself and its companies has lost billions after being pressured by the US over Huawei/5G.
It seems that the government has finally woken up to what might happen here.
I wasn't aware that it apparently has power to nix the deal, though, which is what I'm guessing is the case from the first steps it has taken.
The EU will also have reason to be concerned about the deal too.
I would be surprised if it gets the go ahead.
The problem is that I can't see a viable solution to the overall situation.