Arm Holdings is being investigated by the US Federal Trade Commission (FTC) for possible antitrust violations related to its semiconductor technology licensing, the company confirmed in 2026 [1, 2, 3, 4, 5, 6, 7, 8]. The probe centers on whether Arm is unlawfully monopolizing parts of the chip market by refusing or degrading CPU license agreements while working to develop its own processors [1, 2, 3, 4, 5, 6, 7, 8].
Arm was notified early this year of the FTC’s investigation and instructed to preserve relevant documents [2, 3, 4, 5, 6, 8]. The company historically licenses chip designs and instruction sets rather than manufacturing chips itself. It announced plans in March 2026 to develop its own CPUs internally, a shift aimed at providing an alternative to Intel and AMD products at the request of its customers [1, 2, 3, 4, 5, 6, 8]. Arm expects its self-developed chip business to generate about $15 billion annually within five years [5, 6].
The FTC probe marks the latest escalation in a global dispute between Arm and Qualcomm. Qualcomm filed a complaint in 2024 with the European Commission accusing Arm of restricting license access and withholding key technology [2, 3, 4, 5, 6]. South Korean authorities also conducted unannounced antitrust inspections at Arm’s Seoul offices in 2025 [2, 3, 4, 5, 6, 8].
Arm has denied all allegations of anti-competitive behavior. It called Qualcomm's claims "baseless" and motivated by ongoing commercial disputes [2, 3, 4, 5, 6]. Arm’s customers include Qualcomm, Apple, Nvidia, and others dependent on its chip licenses [1, 2, 3, 4, 5, 6, 8]. The dispute has included opposition to Nvidia's failed 2022 bid to acquire Arm and licensing conflicts over Nuvia technology [2, 3, 4, 5, 6].
Arm’s share price fell sharply by about 8.46% on May 15, 2026, closing near $209 a share, despite nearly doubling year-to-date [2, 3, 5, 6, 8]. Analysts warn that expanded regulatory scrutiny could extend to Arm’s pricing, renewal terms, and potential discriminatory licensing practices [8].
AMD Data Center head Forrest Norrod said the probe "keeps us on our toes and running fast" [5]. The next expected concrete update will come from ongoing FTC investigative proceedings and possible document requests as the agency evaluates the scope of any violations [2, 3, 4, 5, 6, 8].
