The FTC said Yvida had the motivation and ability to crack down on competitors after the deal was completed
PHOENIX, Dec 3 (Xinhua) -- The U.S. Federal Trade Commission (FTC) filed a lawsuit Thursday to halt Avista's $40 billion acquisition of ARM. "This proposed deal will allow one of the largest chipmakers to control the computing technology and design on which their competitors rely," the FTC said in a statement. "Since its announcement last year, the deal has faced scrutiny from regulators in several countries and regions around the world, and the FTC's litigation is the biggest drag that could make it impossible to complete."
"The proposed deal will give RVI the ability and motivation to use its control of this technology to crush competitors and competition, ultimately leading to lower product quality, fewer innovations, higher prices, and harming Americans using ARM-based technology products," the FTC said. It added that the combined company "will have the means and motivation to crack down on innovative next-generation technologies, including those for data centers and driver assistance systems."
Nvida's share price was little changed after the news, as investors focused on its growing data center business. In regular trading, Vida rose $6.91, or 2.2 percent, to $321.26. (Author/Frost Leaf)
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