Nvidia VS Regulators: Chip Giant Faces Antitrust Battle

The biggest chip manufacturer in the world, Nvidia, is in deep waters as French regulators are about to file an antitrust lawsuit against it, becoming the first regulators to act against it. According to the regulators, the reason for the antitrust lawsuit is that Nvidia provides its equipment at anti-competitive prices. The French enforcers conducted a series of dawn raids last September in the graphic cards sectors, which sources suggest targeted Nvidia. 

Nvidia is the biggest chip manufacturer in the world, and its chips are used in gaming graphic processing units and generative AI. After the prominence of generative AI models like ChatGPT or Gemini, the demand for Nvidia’s chips has seen a significant rise. Now, these actions by the French can attract regulatory scrutiny on both sides of the Atlantic, i.e., in France and the USA. 

Currently, the French regulatory authorities have not shared much information about the antitrust lawsuit, and Nvidia has declined to comment on the matter. However, in its regulatory filing last year, the company said that the regulatory authorities in the EU, France and China were asking for information on its graphic processing units. 

If the company is found guilty in the antitrust lawsuit, it will have to pay fines to keep doing business in the country. Historically, Companies risk fines of around 10% of their annual global sale if they breach any French antitrust lawsuit. However, French regulators can provide concessions to the companies and lower their penalties. 

The company’s future is uncertain in France, and further scrutiny from other regions can significantly impact its growth. Many regulatory authorities are unhappy with the reliance on Nvidia chips and are finding new ways to fulfil their chip needs. 

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