EU Antitrust Regulators Scrutinize Nvidia's Business Practices in AI Chip Market

Nvidia's business practices in EU antitrust spotlight, sources say

BRUSSELS, Dec 6 (Reuters) - EU antitrust regulators are asking Nvidia (NVDA.O), opens new tab rivals and customers if the U.S. artificial intelligence chipmaker bundles its products that may give it an unfair advantage, people with direct knowledge of the matter said, in a move that may lead to a formal investigation. Nvidia, which has a near-monopoly with an 84% market share, far ahead of rivals Intel (INTC.O), opens new tab and AMD (AMD.O), opens new tab, has in recent years attracted regulatory scrutiny from regulators in the European Union, the United States, the UK, China and South Korea. The company has seen high demand from customers involved in generative AI and accelerated computing for its chips. The European Commission recently sent out questionnaires asking if there is any commercial and technical tying of graphics processing unit (GPU) products by Nvidia, the sources said. The document is separate from another related to Nvidia's proposed buy of artificial intelligence startup Run:ai. The EU competition enforcer wants to know how Nvidia sells its GPU products to various customers and whether the contracts require them to buy networking equipment with GPU, the sources said. The Commission declined to comment. Nvidia said: "We support customer choice and compete on merit across the board. Our products are best-in-class and able to stand on their own. We support open industry standards, enabling our partners and customers to use our products in a wide variety of configurations and system designs." Such questionnaires are usually part of the watchdog's fact-finding procedures which could beef up initial concerns. EU antitrust violations can cause companies fines as much as 10% of their global annual turnover. The French antitrust regulator is already investigating Nvidia and is preparing to hit the company with charges, other sources told Reuters earlier this year. Reporting by Foo Yun Chee; Editing by Chizu Nomiyama Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Boards, Policy & RegulationRegulatory Oversight Foo Yun Chee Thomson Reuters An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

Nvidia's business practices in EU antitrust spotlight, sources say

BRUSSELS (Reuters) - EU antitrust regulators are asking Nvidia rivals and customers if the U.S. artificial intelligence chipmaker bundles its products that may give it an unfair advantage, people with direct knowledge of the matter said, in a move that may lead to a formal investigation. Nvidia, which has a near-monopoly with an 84% market share, far ahead of rivals Intel and AMD, has in recent years attracted regulatory scrutiny from regulators in the European Union, the United States, the UK, China and South Korea. The company has seen high demand from customers involved in generative AI and accelerated computing for its chips. The European Commission recently sent out questionnaires asking if there is any commercial and technical tying of graphics processing unit (GPU) products by Nvidia, the sources said. The document is separate from another related to Nvidia's proposed buy of artificial intelligence startup Run:ai. The EU competition enforcer wants to know how Nvidia sells its GPU products to various customers and whether the contracts require them to buy networking equipment with GPU, the sources said. The Commission declined to comment. Nvidia said: "We support customer choice and compete on merit across the board. Our products are best-in-class and able to stand on their own. We support open industry standards, enabling our partners and customers to use our products in a wide variety of configurations and system designs." Such questionnaires are usually part of the watchdog's fact-finding procedures which could beef up initial concerns. EU antitrust violations can cause companies fines as much as 10% of their global annual turnover. The French antitrust regulator is already investigating Nvidia and is preparing to hit the company with charges, other sources told Reuters earlier this year. (Reporting by Foo Yun Chee; Editing by Chizu Nomiyama)

EU probes Nvidia for potential antitrust practices By Investing.com

The European Union's antitrust regulators are conducting an inquiry into Nvidia (NASDAQ:NVDA)'s sales practices, questioning whether the leading artificial intelligence chipmaker is engaging in unfair bundling of its products, according to a report from Reuters. Sources familiar with the matter indicate that this scrutiny could potentially escalate into a formal investigation. Nvidia, holding a dominant position in the market with an 84% share, surpassing competitors like Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD), has been under the regulatory radar in several jurisdictions, including the EU, the United States, the UK, China, and South Korea. The company's chips, highly sought after for generative AI and accelerated computing tasks, are now at the center of the EU's latest probe. Recently, the European Commission has been distributing questionnaires inquiring about Nvidia's sales tactics, specifically whether the company is commercially or technically tying its graphics processing unit (GPU) products. This line of questioning is separate from another set of inquiries related to Nvidia's attempt to acquire the artificial intelligence startup Run:ai. The Commission is looking into how Nvidia markets its GPU products to different customers and if the contracts necessitate the purchase of networking equipment alongside GPUs. Despite the ongoing investigation, the European Commission has not provided any comments. In response to the scrutiny, Nvidia has maintained that it fosters customer choice and competition based on the quality of its offerings. The company emphasizes that its products are independently strong and that it adheres to open industry standards, allowing for versatile use of its products across various configurations and system designs. These questionnaires are typically part of the Commission's preliminary fact-finding steps, which may reinforce initial concerns about antitrust violations. Such infringements could result in penalties amounting to up to 10% of a firm's global annual revenue. In a related development, the French antitrust authority is also examining Nvidia's practices and is reportedly preparing to levy charges against the company, according to sources earlier this year.