China accuses NVIDIA of breaching anti-monopoly laws
What's the story
China has accused American tech giant NVIDIA of breaching its anti-monopoly laws. The country's market regulator announced this in a statement on Monday. The State Administration for Market Regulation that a preliminary probe found NVIDIA failed to comply with conditions set during its 2020 approval of the Mellanox Technologies acquisition. The regulator's announcement comes as Washington and Beijing hold trade talks in Madrid, highlighting continued tensions over technology and market regulations.
Investigation details
Probe into NVIDIA's acquisition of Mellanox
The current findings have prompted China to extend its antitrust investigation into the matter. The probe was launched in December 2024, with the case carrying significant geopolitical weight amid ongoing trade tensions between Washington and Beijing, particularly in the semiconductor sector. The regulator has yet to disclose details of how NVIDIA allegedly failed to meet its commitments or which provisions of the law were breached. NVIDIA's shares slipped 2% in pre-market trading on Monday.
Fine
Penalties can range from 1% to 10% of annual sales
Under China's antitrust rules, companies may be fined between 1% and 10% of their annual sales from the previous year. NVIDIA reported $17 billion in revenue from China in the fiscal year ending January 26, accounting for 13% of its global sales. Nvidia, the world's leading AI chipmaker, has been at the heart of the dispute. Its sales to China have faced shifting restrictions under President Donald Trump, reflecting the intensifying battle for tech dominance between Washington and Beijing.