China Launches Antitrust Investigation into NVIDIA

China launched an antitrust probe into NVIDIA over potential breaches around a 2020 acquisition of Mellanox Technologies Ltd., an Israeli-American supplier of computer networking products.

According to a Bloomberg report (via Yahoo Finance), the State Administration for Market Regulation started investigating the circumstances surrounding the deal and the company's recent activity. The Chinese government approved the $7 billion acquisition deal on the condition that the US chipmaker doesn't discriminate against Chinese companies and that Mellanox provides information on new products to its rivals within 90 days of making them available to NVIDIA.

Reportedly, the Chinese investigation into NVIDIA is a response to the US sanctions prohibiting the chipmaker company from selling its products to China, as well as pushing its allies to do the same. For instance, as reported by Bloomberg, the Dutch administration prevented ASML Holding NV, a monopolist in producing machines that make the most advanced chips, from selling its equipment to China, as well as maintaining it. These restrictions caused China to target US companies. For example, China's cybersecurity regulator said that products of Micron Technology Inc. didn't pass a review and barred the company's chips from "critical infrastructure."

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