TECH NEWS – It’s a little strange to hear this from them, since they’re the ones who don’t really respect copyright laws (they copy a lot of stuff).

China has filed this lawsuit on the grounds that Nvidia allegedly violated anti-monopoly laws with an acquisition deal in 2020. In doing so, it essentially dragged Nvidia into the trade war between itself and the US. More recently, the U.S. Department of Justice (DoJ) opened an investigation into the company over its artificial intelligence business, so the Jensen Huang-led company has its work cut out for it with regulators.

China’s State Administration of Market Regulation has launched an investigation into whether Nvidia allegedly violated local anti-monopoly laws, in particular by acquiring Israeli chipmaker Mellanox Technologies. The acquisition was approved by Chinese regulators on the condition that the deal would not discriminate against Chinese companies. One of the conditions of the acquisition was that Nvidia had to inform competitors about new products 90 days before the official launch in order to maintain market competitiveness. It also had to make clear that its products would work with Chinese chipmakers so that the partnership would not affect its position in domestic markets.

Although the Chinese regulator’s investigation does not mention the area under scrutiny, the development is certainly worrying for Nvidia and is already being felt on the stock market. At yesterday’s opening, the company was already down 2% and this is clearly a move against the USA (as we reported in yesterday’s news). In vain, it has introduced (dumbed down) graphics cards for the Chinese market due to US sanctions, which has worsened the progress made by Nvidia and China in the AI segment (since America restricts access).

While it is still questionable what the Chinese authorities will come up with, it is almost certain that some kind of fine will be imposed on Nvidia to favor domestic manufacturers.

Source: WCCFTech