Synopsys' (SNPS) $35 billion acquisition of Ansys (ANSS) could reduce competition in semiconductor chip design and light simulation software, the UK Competition and Markets Authority said Friday.

The agency said its concerns are in areas such as global register transfer level power consumption analysis, which is used to check how much power a chip consumes and requires to function, as well as global optics software and global photonics software.

"This could lead to a loss of innovation, lower quality software, and/or higher prices, which may then be passed onto UK businesses and consumers," the CMA said.

The agency said that Synopsys and Ansys now have the opportunity to propose measures to address its concerns, adding that if no satisfactory proposals are made, it will progress to an in-depth phase 2 investigation.

Synopsys and Ansys did not immediately respond to MT Newswires' request for comment.