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On Fri, 6 Dec, 4:04 PM UTC
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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.
[2]
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)
[3]
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.
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The European Union's antitrust regulators are investigating Nvidia's sales practices, focusing on potential product bundling that could give the AI chipmaker an unfair advantage in the market.
The European Union's antitrust regulators have initiated an inquiry into Nvidia's business practices, focusing on potential anti-competitive behavior in the artificial intelligence (AI) chip market. The investigation centers on whether Nvidia, the dominant player in the AI chip industry, is engaging in unfair product bundling that could stifle competition 1.
Nvidia currently holds a near-monopoly in the AI chip market with an 84% market share, far outpacing competitors like Intel and AMD. This dominant position has attracted regulatory attention not only in the EU but also in the United States, the UK, China, and South Korea 2.
The European Commission has recently distributed questionnaires to Nvidia's rivals and customers, seeking information on potential commercial and technical tying of graphics processing unit (GPU) products. Specifically, the regulators are interested in understanding how Nvidia sells its GPU products and whether contracts require customers to purchase networking equipment alongside GPUs 3.
If found in violation of EU antitrust laws, Nvidia could face fines of up to 10% of its global annual turnover. In response to the inquiry, Nvidia has stated, "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" 1.
The EU's investigation is not isolated. The French antitrust regulator is also examining Nvidia's practices and is reportedly preparing to levy charges against the company. This multi-jurisdictional scrutiny underscores the growing concern over market concentration in the critical AI chip sector 2.
The outcome of these investigations could have significant implications for the AI industry and market competition. As Nvidia's chips are in high demand for generative AI and accelerated computing applications, any regulatory action could reshape the landscape of AI technology development and deployment 3.
While the current questionnaires are part of the EU's fact-finding procedures, they could lead to a formal investigation if initial concerns are substantiated. The tech industry and investors will be closely watching the developments, as they could signal a shift in how regulators approach market dominance in the rapidly evolving AI sector 1.
Reference
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The U.S. Department of Justice has initiated an antitrust investigation into Nvidia, the leading AI chip manufacturer, following complaints from rivals about its sales practices. The probe focuses on Nvidia's potential monopolistic behavior in the AI chip market.
13 Sources
13 Sources
The U.S. Department of Justice has issued a subpoena to Nvidia as part of a widening antitrust probe into the AI chip market. This move signals increased scrutiny of Nvidia's dominant position in the rapidly growing artificial intelligence industry.
21 Sources
21 Sources
Nvidia sues EU antitrust regulators for accepting an Italian request to examine its acquisition of AI startup Run:ai, citing a previous court ruling that limits regulatory powers on smaller deals.
2 Sources
2 Sources
Nvidia, the leading AI chip manufacturer, is reportedly under antitrust investigation by the U.S. Department of Justice. The probe focuses on the company's market dominance in AI chips and its partnerships with other tech firms.
3 Sources
3 Sources
The European Commission will assess Nvidia's proposed acquisition of AI startup Run:ai following concerns raised by Italian regulators about potential competition risks in the AI and data center markets.
5 Sources
5 Sources
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