Nvidia Challenges EU Antitrust Regulators Over Run:ai Acquisition Scrutiny

Nvidia takes EU antitrust regulators to court for probing AI startup Run:ai bid

BRUSSELS, Feb 24 (Reuters) - U.S. chipmaker Nvidia (NVDA.O), opens new tab has sued EU antitrust regulators for accepting an Italian request last year to scrutinise its acquisition of AI startup Run:ai, saying they had flouted an earlier court ruling restricting their merger powers on minor deals. While the case does not have any impact on the Run:ai deal which was eventually approved by the EU competition watchdog in December last year, a ruling favouring Nvidia may further curb the regulator's merger power. Businesses have been concerned in recent years with the European Commission flexing a rarely-used power called Article 22 to assess small deals even though these are below the EU's merger revenue threshold. The EU executive says it is concerned about killer acquisitions in which big companies buy startups to shut them down, but companies criticise such moves as regulatory over-reach. Europe's highest court, however, in a landmark ruling in September last year said the Commission cannot encourage or accept referrals of deals without a European dimension from national enforcers when the latter do not have the powers to examine such deals under their own national laws. Nvidia cited the ruling in its lawsuit filed with the Luxembourg-based General Court, Europe's second-highest, according to a filing on the court website. "The decision unlawfully accepted a referral request from the Italian Autorità Garante della Concorrenza (AGCM), regarding a transaction that fell below the EU Merger Regulation and member state merger control thresholds, based on the AGCM's exercise of loosely defined, ex post, discretionary call-in powers," Nvidia said. It said regulators' decision to take up the Italian request breaches principles of institutional balance, legal certainty, proportionality and equal treatment. The case is T-15/25 Nvidia v Commission. Reporting by Foo Yun Chee; Editing by Susan Fenton Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Boards, Policy & RegulationRegulatory OversightExploration & Production 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 sues EU regulators over Run:ai deal scrutiny By Investing.com

Investing.com -- U.S. chipmaker Nvidia (NASDAQ:NVDA) has taken legal action against European Union (EU) antitrust authorities for agreeing to an Italian request last year to examine its purchase of AI startup Run:ai. Nvidia alleges that the regulators disregarded a prior court decision that limited their authority over smaller deals. The lawsuit, however, will not affect the Run:ai transaction, which the EU competition watchdog approved in December last year. Nevertheless, a ruling in favor of Nvidia could potentially limit the regulator's authority over mergers further. Companies have expressed worry in recent years as the European Commission has occasionally invoked a seldom-used power known as Article 22 to review smaller transactions that fall below the EU's merger revenue threshold. The EU executive has expressed concerns about so-called killer acquisitions, where large corporations acquire startups with the intention of shutting them down. However, businesses have criticized such actions as regulatory overreach. In September last year, the highest court in Europe stated in a significant ruling that the Commission cannot encourage or accept referrals of deals without a European dimension from national enforcers if those enforcers lack the authority to examine such deals under their own national laws. Nvidia referenced this ruling in its lawsuit lodged with the General Court in Luxembourg, which is Europe's second-highest court, as per a filing on the court's website. Nvidia has stated that the decision to accept the referral request from the Italian Autorità Garante della Concorrenza (AGCM) was unlawful. This request pertained to a transaction that fell below the EU Merger Regulation and member state merger control thresholds, and was based on the AGCM's use of loosely defined, ex post, discretionary call-in powers. According to Nvidia, the regulators' decision to accept the Italian request violates principles of institutional balance, legal certainty, proportionality, and equal treatment.