EU Investigates Potential Antitrust Actions Against Nvidia
The European Union's antitrust regulators are conducting an investigation into whether leading artificial intelligence chip manufacturer Nvidia is engaging in unfair bundling of its products. Sources familiar with the matter indicate that this scrutiny could turn into a formal investigation.
Nvidia holds an 84% market share, surpassing competitors like Intel and AMD, and is under the watch of regulatory authorities in various jurisdictions, including the EU, the U.S., the United Kingdom, China, and South Korea. The company’s chips, which are in high demand for manufacturing artificial intelligence and accelerated computing tasks, are now at the center of the EU’s latest investigation.
Recently, the European Commission has distributed surveys questioning Nvidia's sales tactics, particularly whether the company is commercially or technically tying its graphics processing unit (GPU) products. This survey is separate from a series of investigations related to Nvidia's acquisition attempt of the AI venture Run:ai.
The Commission is looking into how Nvidia markets its GPU products to different customers and whether contracts require the purchase of networking equipment alongside GPUs. Despite the ongoing investigation, the European Commission has not commented.
In response to this scrutiny, Nvidia stated that it fosters competition based on customer choice and the quality of its offerings. The company emphasized that its products are robust on their own and comply with open industry standards that allow for flexible usage across various configurations and system designs.
These surveys are generally part of the Commission's preliminary fact-finding steps and may reinforce initial concerns regarding antitrust violations. Such violations can lead to fines of up to 10% of a company's global annual revenue.
In a related development, the French antitrust authority is also examining Nvidia's practices and is reportedly preparing charges against the company this year.