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Nvidia's Business Practices Interrogated by EU Antitrust Authorities

CIO Insider Team | Saturday, 7 December, 2024
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The US artificial intelligence chipmaker Nvidia has now come under introspection from EU antitrust authorities about whether it bundles its products in a way that could give it an unfair advantage.

With a near-monopoly market share of 84 percent, significantly larger than competitors AMD and Intel, Nvidia has been under regulatory scrutiny in recent years from regulators in China, South Korea, the US, the UK, and the EU.

Customers working on accelerated computing and generative AI have shown a strong interest in the company's chips.

Recently, the European Commission distributed questionnaires inquiring as to whether Nvidia has any technical or economic ties to graphics processing unit (GPU) products.

Nvidia said: “We support customer choice and compete on merit across the board. Our products are best-in-class and able to stand on their own”.

“We support open industry standards, enabling our partners and customers to use our products in a wide variety of configurations and system designs.”

This document is distinct from another concerning Nvidia's proposed acquisition of Run:ai, an artificial intelligence firm.

With a near-monopoly market share of 84 percent, significantly larger than competitors AMD and Intel, Nvidia has been under regulatory scrutiny in recent years from regulators in China, South Korea, the US, the UK, and the EU.

The EU competition watchdog wants to know how Nvidia distributes its GPU products to different clients and if the contracts mandate that they purchase GPU-equipped networking equipment.

These kinds of questionnaires are typically used as part of the watchdog's fact-finding processes, which may allay early worries.

Companies who violate EU antitrust laws may be fined up to 10 percent of their yearly worldwide revenue.

Nvidia is already under investigation by the French antitrust authority, which is getting ready to file charges against the company.



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