China decides to launch more thorough probe into Nvidia for potential antitrust violations

By Gokhan Ergocun

ISTANBUL (AA) - China has decided to launch a more thorough investigation into Nvidia for potential antitrust violations, following a preliminary investigation, the State Administration for Market Regulation (SAMR) announced on Monday.

Nvidia, an American technology company headquartered in California, violated China's antimonopoly law and the market regulator's 2020 decision on the firm's acquisition of Mellanox Technologies, state-run Xinhua reported.

In July, the Cyberspace Administration of China (CAC) summoned Nvidia to clarify the "backdoor security risks" associated with its H20 computing chips.

"Recently, serious security issues with Nvidia's computing chips have been exposed. Previously, US lawmakers called for advanced chips exported from the US to be equipped with tracking and location capabilities," the CAC said in a statement.

In April, Washington restricted Nvidia from selling its H20 chips to China in an escalation of its tech war with Beijing, saying it would be required to have an export license "for the indefinite future" to sell the chips to the country.

In 2020, the SAMR conditionally approved the acquisition after an antitrust review that began in 2019.