China Says Nvidia Violated Anti-Monopoly Laws With 2020 Mellanox Deal

China has ruled that Nvidia Corp. violated anti-monopoly laws with its 2020 acquisition of Mellanox Technologies Ltd., Bloomberg News reported.

SAMR has not yet said what remedies it will seek from Nvidia. (Photo: Nividia)

The State Administration for Market Regulation (SAMR) concluded after a preliminary probe that the U.S. chipmaker’s takeover of the networking gear maker broke antitrust regulations.

Nvidia shares fell about 2% in pre-market trading, while U.S. stock index futures pared gains.

The announcement came as U.S. and Chinese officials entered a second day of wide-ranging negotiations in Madrid over tariffs that could shape the future of trade ties.

Separately, Beijing launched an anti-dumping investigation into certain U.S.-made semiconductors, including chips from Texas Instruments. Those shares also slipped roughly 2% pre-market.

SAMR has not yet said what remedies it will seek from Nvidia. The company has been thrust into the center of U.S.-China tensions over advanced technologies, given its pivotal role in powering artificial intelligence (AI).