World

US antitrust watchdog opens investigation into ARM over chip licensing practices

United States Federal Trade Commission reportedly launches an antitrust investigation into whether the company abused its dominant position in the global chip design market

Updated 4 months ago · Published on 16 May 2026 10:24AM

US antitrust watchdog opens investigation into ARM over chip licensing practices
British semiconductor giant Arm Holdings is facing mounting regulatory scrutiny (Photo from Bloomberg) - May 16, 2026

ARM Holdings is reportedly under investigation by the United States Federal Trade Commission amid concerns the British chip designer may be using its market dominance to restrict competition in the semiconductor sector.

According to a report by Bloomberg News, the FTC is examining whether Arm attempted to monopolise parts of the semiconductor industry through its licensing practices involving chip architecture and processor blueprints widely used across the global technology market.

The investigation is said to focus on whether Arm could reject, limit or downgrade licensing agreements for semiconductor designs used in the development of central processing units.

Bloomberg reported that the US regulator informed Arm of the probe earlier this year and instructed the company to preserve relevant documents linked to the investigation.

Arm declined to comment on the reported inquiry, while the FTC did not immediately respond to requests for comment.

The scrutiny comes amid an escalating commercial dispute between Arm and Qualcomm over allegations that Qualcomm breached contractual terms following its acquisition of chip start-up Nuvia.

In response to accusations of anti-competitive behaviour, Arm strongly rejected the claims.

“Qualcomm's baseless allegation of anticompetitive conduct is nothing more than a desperate and underhanded attempt to obtain leverage in the parties' ongoing commercial dispute for its own competitive benefit.”

Qualcomm did not immediately comment on the matter.

Arm occupies a critical position in the global semiconductor ecosystem, with a significant share of its revenue derived from licensing chip technology to major technology companies including Nvidia and Apple, while also collecting royalties tied to the use of its designs.

Regulatory scrutiny of Arm has also intensified beyond the United States.

South Korea’s competition regulator reportedly conducted investigations at Arm’s Seoul offices last November as part of broader concerns surrounding the company’s licensing practices.

Bloomberg reported that the South Korean probe stemmed from a complaint filed by Qualcomm, although Reuters said it was unable to independently verify the claim.

The latest investigation adds to growing international pressure on dominant technology firms as regulators worldwide seek tighter oversight of companies controlling critical infrastructure within the semiconductor and artificial intelligence supply chains. - May 16, 2026

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