China's Market Regulator Finds Nvidia in Violation of Anti-Monopoly Law: Updates on Investigation into Mellanox Acquisition

China's Market Regulator Finds Nvidia in Violation of Anti-Monopoly Law: Updates on Investigation into Mellanox Acquisition

China's market regulator announced on Monday that Nvidia has been found to have violated the country's anti-monopoly law following a preliminary investigation. Beijing will continue to look into the U.S. chip giant's actions. Nvidia's shares dropped approximately 2% in premarket trading as a result of this news. The investigation by China's State Administration for Market Regulation (SAMR) was initiated late last year in connection to Nvidia's acquisition of Mellanox and certain agreements made during the acquisition. Nvidia purchased the Israeli technology company, which specializes in network solutions for data centers and servers, in 2020. The deal was initially approved by China with specific conditions. However, the SAMR's preliminary findings suggest that Nvidia breached China's anti-monopoly laws in relation to the acquisition and its conditions. Stay tuned for further updates on this developing story.