Bond.az -- Arm Holdings Plc (NASDAQ:ARM) is facing a formal antitrust investigation by the U.S. Federal Trade Commission (FTC) over the licensing of its CPU technology, according to a Bloomberg report.
The probe escalates global regulatory scrutiny of the UK-based chip designer, majority-owned by SoftBank Group Corp.
The FTC is examining whether Arm is attempting to illegally monopolize segments of the semiconductor market, specifically by refusing or degrading CPU blueprints for third-party licensees while accelerating its own chip-development business.
The FTC notified Arm of the probe earlier this year, issuing a formal demand for document preservation. Both the FTC and Arm declined to comment.
The U.S. probe follows friction between Arm and Qualcomm Inc. Qualcomm filed a complaint with the European Commission, accusing Arm of restricting access to licenses. South Korean authorities also inspected Arm's Seoul offices last year.
Arm called Qualcomm's allegations a "desperate and underhanded attempt to obtain leverage." Qualcomm did not respond to requests for comment.
The regulatory dispute coincides with a major strategy shift under CEO Rene Haas. In March, Arm announced plans to design its own processors, projected to generate $15 billion annually within five years, expanding into data centers and AI.
While clients like Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) welcomed the move, Qualcomm argues it signals intent to restrict open licensing. Following the news, Arm shares edged down less than 1% to $207.96 late Friday.
