France Nears Decision on Potential Antitrust Charges Against Nvidia

According to Global Competition Review, which first reported the latest procedural update, officials at the French Competition Authority indicated that investigators are approaching a determination on whether to issue a formal statement of objections against the U.S. chipmaker. Such a filing would set out alleged breaches of competition rules and begin an adversarial phase in the case.

The French authority has not publicly detailed the specific allegations under review, and the conclusion of the investigation does not necessarily mean Nvidia will face sanctions. Reuters reported this week that Umberto Berkani, the agency’s general rapporteur, said the inquiry is nearing completion, with investigators expected either to advance the case or close it.

A formal charge sheet would represent one of the most consequential regulatory challenges yet for Nvidia, whose graphics processing units (GPUs) have become central to the development and deployment of generative AI systems.

The French investigation stems from broader concerns over competition in cloud computing and AI infrastructure. French authorities conducted raids in the graphics card sector in September 2023 as part of an inquiry into competition conditions in cloud services. Reuters later reported that Nvidia was among the companies targeted by the investigation.

Regulators have increasingly focused on whether Nvidia’s dominant position in AI chips could create barriers to competition across adjacent markets. In a 2024 report on generative AI competition, the French Competition Authority highlighted concerns regarding dependence on Nvidia’s CUDA software ecosystem, which is widely used by developers to program AI applications on Nvidia hardware. The regulator also examined relationships between chip suppliers, cloud providers and AI developers, warning that vertical integration and exclusive arrangements could reinforce existing market power.

Related: Nvidia Faces New Antitrust Questions Over $20 Billion Groq Licensing Deal

Nvidia has become the dominant supplier of advanced AI accelerators following the surge in demand triggered by generative AI applications such as ChatGPT. The company’s hardware and software ecosystem has become deeply embedded across the AI value chain, supplying major cloud providers and technology companies building large language models.

The company’s growing influence has attracted attention from competition authorities in several jurisdictions. Reuters previously reported that French regulators were preparing possible charges against Nvidia in 2024, potentially making France the first competition authority to take formal enforcement action against the company over alleged anticompetitive practices.

Beyond Europe, Nvidia has also faced regulatory scrutiny in China. Chinese authorities opened an antitrust investigation into the company in late 2024, focusing on whether Nvidia complied with commitments tied to its acquisition of Mellanox Technologies.

Competition concerns surrounding AI infrastructure have broadened globally as regulators seek to assess whether concentration in semiconductors, cloud computing and foundational AI models could limit market entry and innovation. Authorities in Europe, the United States and the United Kingdom have all launched reviews or market studies examining competitive dynamics in generative AI and the relationships among leading technology firms.

Nvidia has previously disclosed that regulators in Europe, France and China requested information related to its business practices and products. The company has generally said it competes on the merits of its technology and cooperates with regulatory inquiries.

Source: Global Competition Review