UK’s Digital Secretary instructs CMA to look into NVIDIA’s takeover of ARM
He has written to the Competition and Markets Authority (CMA) to inform them of his decision and has instructed them to begin a ‘phase one’ investigation to assess the transaction.
The CMA will now prepare a report with advice on jurisdictional and competition issues. The report will also include a summary of any representations it receives on potential national security issues arising from a consultation it will launch to gather third-party views.
Alongside the CMA’s process, the government will examine the national security public interests.
The Digital Secretary, who has ‘quasi-judicial’ powers under the Enterprise Act 2002 to intervene in certain mergers on public interest grounds, has issued the notice to ensure that any national security implications for the United Kingdom are explored.
‘We want to support our thriving UK tech industry and welcome foreign investment, but it is appropriate that we properly consider the national security implications of a transaction like this,’ says Dowden.
The ‘phase one’ investigation will ensure specific considerations around competition, jurisdiction and national security are assessed.
It will advise whether the acquisition results in a substantial lessening of competition in any market in the UK, and whether it would be appropriate to deal with any concerns through undertakings by the parties involved in place of a referral to a ‘phase two’ investigation.
The CMA has until 30 July 2021 to complete and submit this report to the Digital Secretary.