The deal values the company at $40bn and was announced last September.
It appears that regulators are concerned that Nvidia could use the acquisition to restrict access to Arm’s technology despite promises from Nvidia that it will maintain Arm's open-licensing model.
"Our analysis shows that the acquisition of Arm by Nvidia could lead to restricted or degraded access to Arm's IP, with distortive effects in many markets where semiconductors are used," said the European Commissioner for Competition Margrethe Vestager.
Arm's unique selling point as a neutral vendor that is able to serve the whole chip industry appears to be endangered and regulators around the world are starting to take a more detailed look at this deal.
Nvidia's Jensen Huang remains determined to see the deal through, but could there now be a chance that Arm might just return to the stock exchange as a British company?