NVIDIA was investigated by the State Administration for Market Regulation for allegedly violating the Anti-Monopoly Law of the People's Republic of China and the "Announcement of the State Administration for Market Regulation on the Anti-Monopoly Review Decision on Approving Nvidia's Acquisition of the Equity Interest of Mellanox Technology Co., Ltd. with Restrictive Conditions" (SAMR Announcement [2020] No. 16). This news attracted widespread attention and heated discussion.
According to reports from many media outlets, including Financial News Agency, Daily Economic News, China News Service, Beijing News, Jiemian News, and CCTV News, they all reported on this matter. These reports all pointed out that Nvidia was investigated by the State Administration for Market Regulation in accordance with the law for suspected violation of anti-monopoly laws. This decision not only demonstrates the State Administration for Market Regulation’s determination to maintain fair competition in the market, but also once again emphasizes the importance of antitrust law in China’s market economy.
As the world's leading manufacturer of computer graphics processing units (GPUs), NVIDIA plays an important role in the fields of artificial intelligence, machine learning, and deep learning. However, as its influence in the market gradually expands, its business practices have also received more attention and supervision. This investigation has undoubtedly sounded a wake-up call for Nvidia and reminded other companies to pay attention to compliance with antitrust laws.
It can be seen from the announcement of the State Administration for Market Regulation that NVIDIA's suspected violation of antitrust laws is related to its acquisition of the equity of Mellanox Technology Co., Ltd. When approving the acquisition, the State Administration for Market Regulation attached restrictive conditions to ensure fair market competition. However, Nvidia may have failed to fully comply with these conditions, triggering the investigation.