China’s market regulator announced Monday that Nvidia violated the country’s anti-monopoly law following a preliminary investigation. Officials said the probe, which focuses on Nvidia’s 2020 acquisition of Israeli tech firm Mellanox, will continue.
China approved Nvidia’s $6.9 billion acquisition of Mellanox at the time, but under strict conditions. Regulators now say Nvidia failed to comply with parts of that agreement.
The State Administration for Market Regulation (SAMR) opened the investigation late last year, reviewing Mellanox-related agreements and whether they restrict competition.
Following the announcement, Nvidia shares dropped about 2% in premarket trading. The company has not yet publicly commented on the regulator’s findings.
