China says NVIDIA's Mellanox acquisition violated antitrust law

A regulator has accused NVIDIA of violating China's antitrust laws over its acquisition of chipmaker Mellanox. In its preliminary findings of an investigation it commenced in December, the State Administration for Market Regulation (SAMR) claimed that the company breached both national regulations and the conditional terms China outlined when it rubberstamped the $6.9 billion takeover. The SAMR hasn't announced any penalties yet, as the investigation will continue.

The SAMR is said to have determined its preliminary findings several weeks ago. According to Financial Post sources, the regulator held off from releasing its statement until now, as trade talks with the US take place in Madrid, with the idea of giving Chinese officials more leverage. (Those talks have so far resulted in a framework agreement for TikTok.)

NVIDIA and Mellanox announced the buyout back in 2019. China approved it in April the following year on the ...