The Digital Secretary Nadine Dorries has ordered a Phase Two investigation into the sale of Arm, with the inquiry being carried out by the Competition and Markets Authority (CMA), following an earlier investigation which found significant competition concerns over the deal.
According to Dorries, “Arm has a unique place in the global technology supply chain, and we must make sure the implications of this transaction are fully considered. The CMA will now report to me on competition and national security grounds and provide advice on the next steps.”
She went on to say that while the government’s commitment to the UK’s tech sector was ‘unwavering’ and although it welcomed foreign investment it needed to consider the implications of this transaction.
Arm’s designs are used in chips from many of Nvidia’s rivals including the likes of Apple, Samsung, and Qualcomm.
The CMA now has 24 weeks to conduct its investigation, although this can be extended by up to eight weeks. The European Commission also announced that it was undertaking an in-depth inquiry at the end of October.
However, despite the decision by the UK Government to instigate an inquiry, many still think that the deal will be cleared.