Their argument seems to largely be that ARM does not produce chips directly, but instead licenses designs to other firms using a "neutral, open licensing approach." They feel that this will stop should Nvidia acquire ARM.
The also FTC contends that ARM induces competitive behavior in Nvidia. And a merger would stifle that competition.
Additionally, and probably most importantly, the FTC contends that Nvidia's competition shares sensitive information with ARM. And part of what Nvidia is looking for with this acquisition is this information. I suspect this is the true reason behind the lawsuit; there's probably a good bit of industry support behind it.
Personally, I'd rather ARM be owned by a massive American firm. And out of all the American firms who would be interested in ARM, Nvidia is the most likely to continue to innovate, rather than merely engage in rent seeking behavior.
Why would you want ARM owned by a "massive" American firm. Is there one that you would trust to keep the evolution of ARM IP at the same rate, while also offering IPRs (ie licensing etc) in a way that continues to encourage innovation in the use and evolution of that IP?
Massive firms are not an inherent Good Thing. There are some benefits due to their ability to invest, but there are also multiple downsides to conglomerates, particularly in strategically vital industries and areas.
Well, it's not that I want it owned by a massive firm, but the fact is that only an extremely large company would be in a position to buy it. I was primarily pointing out that, I'd personally favor it being owned by an American company, because the most obvious alternative is a Chinese one. I can't think of many British/European technology companies who could afford ARM and could justify the price premium.
The alternative would be to go public again. But I think the temptation is too great, and some massive company would take it over. ARM is the kind of company which is much more valuable as a part of a conglomerate than it is as an independent company.
The also FTC contends that ARM induces competitive behavior in Nvidia. And a merger would stifle that competition.
Additionally, and probably most importantly, the FTC contends that Nvidia's competition shares sensitive information with ARM. And part of what Nvidia is looking for with this acquisition is this information. I suspect this is the true reason behind the lawsuit; there's probably a good bit of industry support behind it.
Personally, I'd rather ARM be owned by a massive American firm. And out of all the American firms who would be interested in ARM, Nvidia is the most likely to continue to innovate, rather than merely engage in rent seeking behavior.