Arm Holdings is reportedly facing an antitrust investigation by the U.S. Federal Trade Commission (FTC) over its semiconductor technology licensing business.
According to reports, the FTC is examining whether Arm may be using its strong position in the chip industry to unfairly control parts of the semiconductor market. The investigation is focused on Arm’s licensing agreements, which allow companies to use its chip designs for making processors and other hardware.
The regulator is reportedly checking whether Arm could refuse licenses or reduce access to important chip blueprints for certain companies. The FTC has also asked Arm to preserve documents related to the investigation.
Arm has not officially confirmed the probe and declined to comment. The FTC has also not publicly responded to the reports.
The investigation comes during an ongoing legal dispute between Qualcomm and Arm. The disagreement started after Qualcomm acquired chip startup Nuvia. Arm claims Qualcomm may have violated licensing agreements connected to Nuvia’s technology.
In response, Arm accused Qualcomm of making false claims about anti-competitive behavior in order to gain an advantage in their business dispute.
Arm earns a large part of its revenue by licensing chip technology to major technology companies such as Apple and Nvidia. Many smartphones, laptops, and AI systems around the world rely on Arm-based chip designs.
Regulators outside the United States are also reviewing Arm’s business practices. South Korea’s antitrust authority previously investigated the company’s local offices as part of a wider review of its licensing operations.
The growing scrutiny shows increasing global concern about competition and fairness in the fast-growing semiconductor industry.
