Efforts by NVIDIA and ARM holding have come increasingly under fire. Now the US Federal Trade Commission has sued to black the transaction.

The FTC believes the transaction will stifle innovation. They said tomorrow’s technologies depend on a competitive market.

The UK regulators received objections from other tech vendors who, fear Nvidia might withhold access to ARM technology for its own benefit. China and Europe have also been pondering the proposed deal, with the former conducting an informal review and the latter pursuing an official inquiry.

The lawsuit is now likely to bring a demise to the transaction. ARM holdings probably would be better off as a public company. The FTC vote was 4-0 to sue suggesting the deal is DOA.

ARM has grown over the years. In August 2020, Arm signed a three-year agreement with DARPA, the US Defense Advanced Research Projects Agency, enabling DARPA researchers to use all of Arm’s commercially available technology.

AMD was able to merge with Xilinx as shareholder approval and regulatory approval was approved. Xilix designs FPGA devices. The deal is expected to close by year end or early 2022 pending Chinese regulators considering the impact.