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FTC sues to block $40 billion chip acquisition it says would stifle competition

California-based Nvidia has moved to buy Britain-based Arm, whose chip designs are used by manufacturers throughout the world

Updated December 2, 2021 at 6:07 p.m. EST|Published December 2, 2021 at 3:48 p.m. EST
AMD and Nvidia GeForce stickers on laptop. (Dado Ruvic/Reuters)
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The Federal Trade Commission on Thursday sued to block Nvidia’s $40 billion acquisition of U.K. chip designer Arm Ltd., arguing that the huge deal would stifle innovation in semiconductors.

The agency said in a news release that the acquisition could hurt the development of critical new technologies, ranging from cloud computing to driver assistance systems like automated lane changing.