The United States Federal Trade Commission sued on Thursday in order to block Nvidia Corp's acquisition of Arm Holdings.
The regulator stated that the suit is based on antitrust grounds, saying that the proposed deal could allow Nvidia to cut off competitors, which include Apple and Qualcomm, from various semiconductor technologies owned by Arm.
According to its statement, the FTC feels that "the proposed merger would give Nvidia the ability and incentive to use its control of this technology to undermine its competitors, reducing competition and ultimately resulting in reduced product quality, reduced innovation, higher prices, and less choice."