EU Investigates Nvidia for Antitrust Issues

By Foo Yun Chee

BRUSSELS (Reuters) – EU antitrust regulators are probing Nvidia (NASDAQ:NVDA) amid concerns that the U.S. AI chipmaker may be bundling products to gain an unfair market advantage. This inquiry could lead to a formal investigation.

Nvidia currently holds an 84% market share in the GPU sector, significantly outpacing competitors like Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD). The company's dominance has attracted scrutiny from regulators across the globe, including the EU, U.S., UK, China, and South Korea.

The European Commission has sent questionnaires regarding the commercial and technical tying of Nvidia's GPU products to its customers. This is separate from scrutiny of Nvidia's planned acquisition of AI startup Run:ai.

The Commission seeks to understand how Nvidia markets its GPU products and whether customers are required to purchase additional networking equipment alongside their GPUs.

Nvidia has stated that it promotes customer choice and competes based on the merits of its products, which it claims are industry-leading. The company also supports open industry standards, allowing flexible use of its products.

Typically, such inquiries are preliminary steps that can inform further investigations. EU antitrust violations can lead to fines up to 10% of a company's global annual revenue.

In addition, the French antitrust authority is already conducting its investigation into Nvidia and is preparing charges against the company, as reported earlier this year.