China is one of the largest markets in Nvidia, especially for applications for data centers, games and artificial intelligence.
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China’s market regulator said on Monday that Nvidia had violated the country’s anti-monopoly law according to a preliminary investigation and added that Beijing would continue his investigation of the US chip giant.
Nvidia’s shares decreased by around 2% in the Premarket trade.
At the end of last year, the Chinese State Administration for Market Regulation (SAMR) opened an investigation by the NVIDIA in connection with the acquisition of Mellanox and some agreements that were made during the acquisition. NVIDIA acquired the Israeli technology company, which created network solutions for data centers and servers in 2020, in a deal that was approved by China at the time.
In a preliminary investigation, the Samr said that Nvidia had violated China’s anti-monopoly laws regarding this acquisition and its conditions.
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