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Nvidia Faces Global Regulatory Scrutiny Amid Antitrust Investigations

 |  November 28, 2023

Nvidia, the renowned graphics processing unit (GPU) manufacturer, has confirmed that it is under investigation by antitrust regulators in multiple jurisdictions, including the European Union, the United States, and China. The confirmation comes after the French competition authority, the Autorité de la concurrence, conducted a dawn raid in September related to suspected anticompetitive practices in the graphics cards sector.

Initially, the French regulator did not disclose the name of the company under investigation, but Nvidia revealed its involvement in a regulatory filing for the third quarter of fiscal year 2024. The filing, submitted to the Securities and Exchange Commission (SEC), acknowledged the raid by the French authority and indicated that the company is now facing increased interest from other regulatory bodies.

Nvidia’s 10-Q filing stated, “Our position in markets relating to AI has led to increased interest in our business from regulators worldwide, including the European Union, the United States, and China.” The French Competition Authority’s inquiry focused on Nvidia’s business and competition practices in the graphics card and cloud service provider markets.

Read more: Regulators Scrutinize Nvidia’s Graphic Cards Amid Growing Demand and AI Chip Delays

While the company did not provide detailed information about the investigations, it did acknowledge receiving requests for information from regulators in the European Union and China. These requests pertain to Nvidia’s sales of Graphics Processing Units (GPUs) and efforts to allocate supply. The company also anticipates additional requests for information in the future.

Nvidia’s market position, particularly in artificial intelligence (AI) technologies, has drawn regulatory attention globally. The company’s dominance in AI-related markets has prompted authorities to scrutinize its business practices, reflecting the growing awareness of the strategic importance of AI technologies.

In response to the investigations, Nvidia commented that the heightened regulatory scrutiny may result in additional restrictions on its ability to provide products and services. The outcome of these investigations could have far-reaching implications for Nvidia and the broader tech industry, potentially shaping the landscape of competition in the graphics card and AI sectors.

Source: EE News Europe