Nvidia outlaw? China launches investigation for violation of its anti-monopoly laws

Nvidia's practices call into question

In a press releasethe country's public market regulation services highlight an alleged violation of the anti-monopoly law in force. In addition, the acquisition in 2020 of Mellanox Technologies Ltd by Nvidia now seems to be called into question.

As a direct consequence of the announcement of this investigation, the value of the stock is down by around 2% at the start of the week.

Real investigation or desire to cause harm?

This investigation comes in a very specific context where competition and tensions between China and the United States are ever more intense, with little hope of a slowdown in the escalation with the imminent return of Donald Trump to the House. -White. The latter threatens in particular to increase customs duties in order to encourage companies to produce more on American territory.

Nvidia ensuring a comfortable lead in the country of Uncle Sam in the race for GPUs and AI, China must not take a favorable view of the recent export restrictions from the USA of semiconductors and equipment to manufacture them due to risks to American national security. It therefore remains to be seen whether the investigation launched by China has a real basis, or is only a method to put obstacles in the way of competition.