UK will investigate NVIDIA's acquisition of ARM again

The investigation will commence later in 2021

After an initial investigation into Nvidia's acquisition of ARM (makers of reference designs for processors used for various devices), earlier in the year, the UK government will conduct a phase two of the investigation of the deal over national security issues.

As reported on by Reuters, The Sunday Times has learned that the Competition and Markets Authority will lead the investigation and it will supposedly last six months. If the officials find any reason for worry, the deal could be blocked. It may also be approved or done so with some concessions.

The first investigation was conducted over concerns of ARMs neutrality following the Nvidia deal. ARMs reference designs are used industry wide and the UK government was worried that this will give ARM an incentive to raise prices or withdraw from deals with Nvidia's rivals.

Also Read: Softbank sells Arm to Nvidia for $40 billion

Last year in October, ARM co-founder Hermann Hauser went on record saying that the deal will could make Nvidia, "quasi monopoly supplier of microprocessors to the world,” and was worried that this will create another US technology monopoly. Nvidia has promised an open licencing model, if the deal goes through.

That's the least of Nvidia's worries though. The United States Federal Trade Commission has already ordered their own probe into the deal. Companies like Google, Microsoft and Qualcomm have also complained to the US anti-trust regulators over the deal, seeing as how they rely on ARM designs for their products.

Speaking with Engadget, a Nvidia spokesperson said that the company will continue to work with the UK government and the second phase will give Nvidia time to demonstrate how the deal will improve ARM and encourage competition.