Dec 10, 2024 07:39 PM
BUSINESS
Nvidia Asserts Commitment to Fair Competition Amid China Antitrust Probe
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
Nvidia could face significant penalties under China’s amended Anti-Monopoly Law, which took effect in August 2022. Photo: AI generated
Nvidia Corp. on Tuesday asserted its commitment to fair competition, after China’s market regulators opened an antitrust investigation into the U.S. chip giant over suspected violations linked to a 2020 deal.
The probe, announced on Monday by the State Administration for Market Regulation (SAMR), concerns Nvidia’s compliance with the country’s Anti-Monopoly Law and conditions tied to its $6.9 billion acquisition of Israeli network-equipment maker Mellanox Technologies Ltd.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- China has launched an antitrust investigation into Nvidia related to its $6.9 billion acquisition of Mellanox Technologies, approved with conditions in 2020.
- The investigation concerns potential anticompetitive practices, as the combined entities hold dominant market positions in China and globally.
- Nvidia may face fines up to 10% of its revenue if found guilty; past fines for similar cases were significant, with potential penalties reaching up to $28 billion for severe violations.
AI generated, for reference only
Who’s Who
- Nvidia Corp.
- Nvidia Corp. is facing an antitrust investigation by China's State Administration for Market Regulation over its 2020 $6.9 billion acquisition of Mellanox Technologies. Concerns include potential anti-competitive behavior and violating conditions set by Chinese regulators. Nvidia, with a dominant market share in GPU accelerators, could face fines up to 10% of its previous year's revenue under China's amended Anti-Monopoly Law, potentially amounting to significant financial penalties if found in violation.
- Mellanox Technologies Ltd.
- Mellanox Technologies Ltd. is an Israeli network-equipment maker acquired by Nvidia for $6.9 billion in 2020. It held significant market shares, controlling 55% to 60% of the global market and 80% to 85% of the Chinese market for specialized networking equipment. The acquisition faced scrutiny due to potential anti-competitive concerns.
- Qualcomm Inc.
- In 2015, Qualcomm Inc. was fined 8% of its 2013 revenue in China, totaling 6.088 billion yuan (approximately $975 million at that time) for anti-competitive practices.
AI generated, for reference only
What Happened When
- April 2020：
- China finally signed off on the Nvidia-Mellanox deal with seven conditions
- August 2022：
- China's amended Anti-Monopoly Law, which allows significant penalties for anti-competitive behavior, took effect
- Monday, December 9, 2024：
- The State Administration for Market Regulation (SAMR) announced an antitrust investigation into Nvidia
- Monday, December 9, 2024：
- Nvidia's stock closed down 2.55% in New York following the announcement of the probe
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新