The US Federal Trade Commission (FTC) has opened an antitrust investigation into Arm, demanding the company preserve all documents related to licensing agreements and business communications. The probe focuses on two key issues: whether Arm is restricting CPU architecture licenses to third parties while developing its own AI chips and data center CPUs, and whether it is using delayed deliveries, reduced service quality, or tighter licensing rules to squeeze downstream chipmakers.

Arm has historically operated as a neutral IP licensor, holding over 90% of the global smartphone chip architecture market. But the model came under strain after its legal battle with Qualcomm over Nuvia. Qualcomm escalated by filing complaints in the EU, prompting a South Korean raid on Arm’s Seoul office, and now the FTC action.

If the FTC finds Arm liable, it could force the company back to fair, reasonable, and non‑discriminatory (FRAND) licensing and restrict its own chip business. The case also opens the door for RISC‑V to gain traction as a viable alternative architecture.

ICgoodFind : Arm’s licensing model is under fire – a ruling against it could reshape mobile IP and boost RISC‑V adoption.