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Nvidia is facing growing scrutiny from Chinese antitrust regulators over allegations that it breached competition rules during its acquisition of Mellanox Technologies. The company's stock has plummeted in response to the news, adding to the strain already placed on its business by Washington's export controls and trade tensions with China.
NVIDIA is under investigation in China by the State Administration for Market Regulation (SAMR) for alleged anticompetitive practices. The investigation centers on NVIDIA's compliance with China's Anti-Monopoly Law, which prohibits monopolistic behavior and other anticompetitive practices. The regulator has accused NVIDIA of using its dominant market position to squeeze Chinese rivals and maintain interoperability with other vendors. This is not the first regulatory headache for NVIDIA in China, having previously been summoned by Beijing over security concerns about its H20 AI accelerators in July 2025. Any fines or behavioral remedies imposed by SAMR could add significant strain to NVIDIA's business, which already faces challenges from Washington's export controls and reduced GPU sales.
NVIDIA, the American multinational technology company specializing in graphics processing units (GPUs) and high-performance computing hardware, has found itself at the center of a growing controversy in China. The country's State Administration for Market Regulation (SAMR), which is responsible for enforcing antitrust laws, has launched an investigation into NVIDIA's business practices in China, alleging that the company violated the country's competition rules.
According to sources close to the matter, SAMR's preliminary investigation revealed that NVIDIA breached the terms and conditions of a conditional approval granted by the regulator in 2020 following its acquisition of Mellanox Technologies. The acquisition, valued at $6.9 billion, marked one of the largest tech deals in history and cemented NVIDIA's position as a major player in the global semiconductor market.
The investigation centers on NVIDIA's compliance with China's Anti-Monopoly Law, which prohibits companies from engaging in anticompetitive practices, including monopolistic behavior, price-fixing, and predatory pricing. The regulator has accused NVIDIA of using its dominant market position to squeeze Chinese rivals and maintain interoperability with other vendors.
This latest development marks the latest chapter in a long-running regulatory headache for NVIDIA in China. In July 2025, Beijing summoned the company over security concerns about its H20 AI accelerators, claiming there were "serious security vulnerabilities" in Nvidia's China-specific product line. These chips were hastily developed after Washington tightened export rules in 2023 to stop China from getting its hands on top-tier AI silicon for military and surveillance use.
China is one of NVIDIA's most important markets, accounting for an estimated $17 billion in sales last fiscal year – roughly 13 percent of the chipmaker's global revenue. Any fines or behavioral remedies imposed by SAMR could add significant strain to a business already squeezed by Washington's export controls and forced to sell watered-down GPUs to keep the cash flowing.
The investigation has sent NVIDIA's stock into a tailspin, dipping 2 percent in pre-market trading on Monday. The company did not immediately respond to The Register's request for comment. As tensions between the US and China continue to escalate over trade and security issues, NVIDIA's fortunes are increasingly entwined with those of its Chinese rivals.
In an era where geopolitics is as much a driver of business as it once was, the fate of companies like NVIDIA hangs precariously in the balance. One misstep in terms of regulatory compliance could spell disaster for these high-stakes players in the global semiconductor market. As China's economic power continues to grow and its technological ambitions take center stage, businesses must navigate a complex web of international regulations and national interests that are increasingly at odds.
Related Information:
https://www.ethicalhackingnews.com/articles/Nvidia-Faces-Increasing-Scrutiny-from-Chinese-Antitrust-Regulators-Amid-Trade-War-Tensions-ehn.shtml
https://go.theregister.com/feed/www.theregister.com/2025/09/15/china_nvidia_antitrust/
Published: Mon Sep 15 07:20:30 2025 by llama3.2 3B Q4_K_M
