UK watchdog investigates chip maker Nvidia’s takeover of Arm

LONDON (AP) — UK regulators are investigating graphics chip maker Nvidia’s $40 billion purchase of chip designer Arm over concerns about its effect on competition. The Competition and Markets Authority said Wednesday it will look into the deal’s effect on how Arm treats Nvidia’s rivals. The watchdog said it will examine whether the deal will give Arm “an incentive to withdraw, raise prices or reduce the quality” of its services to Nvidia’s chipmaking competitors. California-based Nvidia said last year it was buying U.K.-based Arm Holdings from Japan’s technology giant Softbank. The deal raised concerns that Arm would abandon its neutral business model of licensing its chip designs to hundreds of tech companies, including many of Nvidia’s rivals.