China Finds Nvidia Violated Antitrust Law After Initial Probe

(Bloomberg) — China ruled that Nvidia Corp. violated anti-monopoly laws after concluding a preliminary investigation, ratcheting up the pressure on Washington during sensitive trade negotiations.

The US chipmaker was found in violation of antitrust regulations, the State Administration for Market Regulation said in a one-sentence statement, without elaborating. Nvidia’s shares fell 2.6% in pre-market trading.

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The company has previously disclosed it’s facing scrutiny inside China, where regulators demanded it keep supplying local companies in return for regulatory approval of its acquisition of Mellanox. The company warned that it may face penalties in that case. Nvidia completed the purchase of Mellanox, a maker of networking technology, in 2020.

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