U.S. FTC sues to block Nvidia’s Arm deal

The U.S. Federal Trade Commission has sued to block U.S. chip company Nvidia Corp’s over $80 billion planned acquisition of British chip technology provider Arm.

The FTC said the proposed deal would give Nvidia control over competitors’ computing technology and designs.

The deal has been widely expected to fall apart after facing opposition in the chip industry.

British regulators said last month they would launch an in-depth probe of the deal. The deal is also under scrutiny in the European Union.

Nvidia has promised to work to demonstrate that the transaction will benefit the industry and promote competition.

The deal has more than doubled in value since it was announced in September 2020 as Nvidia shares have risen on the performance of its data center business.

The FTC, which is made up of two Republicans and two Democrats, voted 4-0 to approve the challenge to the planned merger, according to a Reuters report.