China has reportedly launched an "antitrust" probe against NVIDIA, citing violations of the nation's anti-monopoly laws based on an acquisition deal in 2020.
China Now Follows US & France In Opening Up Regulatory Investigation Against NVIDIA, Targeting An Acquisition Done Four Years Ago
Well, it looks like Team Green is now dragged into the apparent "trade wars" between the US and China, as the firm becomes a victim of regulatory investigations from both sides. Just recently, we reported on how the US Department of Justice (DoJ) opened investigations into antitrust law violations in NVIDIA's AI business, showing that Team Green isn't having a great time when it comes to concerns from regulatory firms.
The Chinese media is now reporting on an investigation opened by the nation's "State Administration for Market Regulation," where Team Green scrutinizes whether it has violated local anti-monopoly laws, specifically with its acquisition of the Israeli chip firm Mellanox Technologies. Diving a bit into details, NVIDIA acquired Mellanox back in 2020 and received approval from China's regulatory firms on the condition that the arrangement doesn't discriminate against Chinese firms.
Conditions of the acquisition included that NVIDIA was bound to notify rivals about new products within 90 days prior to the official launch to maintain market competitiveness. NVIDIA also had to make it clear that its products would also work with Chinese chipmakers so that the partnership didn't leverage its position in the domestic markets. While the investigation by China's regulatory authority doesn't mention the area being investigated, the development is certainly worrying for Team Green.
The news has already started to reflect on NVIDIA's share pricing, as at the time of writing, shares fell 2% in early trading, showing consumer sentiment. It is certain that this development is an effort to act against the recent US trade policies, and how they are being framed to thwart China's AI progress. Despite NVIDIA introducing "China-compliant" solutions for local markets, the US has intervened and restricted access, which is why both NVIDIA and China have suffered massively in progress in the AI segment.
It will be interesting to see what the antitrust investigation concludes, but it's safe to say that NVIDIA is now indeed under the fire of regulatory concerns from all over the globe.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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