State Administration for Market Regulation Opens Expanded Antitrust Review of NVIDIA over Mellanox Deal Conditions

On September 12, the State Administration for Market Regulation (SAMR) announced that it will extend its antitrust investigation into NVIDIA, citing potential breaches of China’s Anti-Monopoly Law and the restrictive conditions imposed when approving NVIDIA’s acquisition of Mellanox Technologies.

The SAMR statement explains that a preliminary inquiry determined NVIDIA may have violated both the Anti-Monopoly Law of the People’s Republic of China and the specific covenants attached to the 2020 approval of its purchase of Mellanox. Consequently, the regulator has decided to undertake a full investigation under the relevant legal framework.

Earlier reports from CCTV News indicated that on December 9, SAMR formally launched proceedings against NVIDIA for alleged noncompliance with those same antitrust rules and conditions detailed in SAMR Announcement [2020] No. 16. In response to today’s announcement, NVIDIA shares traded in the U.S. fell more than 2 percent during pre-market sessions.

This probe relates back to NVIDIA’s 2019 agreement to acquire Mellanox, an Israeli firm established in 1999 that specializes in network interconnect research, production, and sales. Under that deal, Mellanox became a wholly owned subsidiary of NVIDIA.

SAMR’s review timeline began when the agency received the merger filing on April 24, 2019. The parties briefly withdrew and then resubmitted the application in February 2020, prompting SAMR to launch a formal examination. The regulator concluded that the merger had the potential to limit competition in markets for GPU accelerators, specialized interconnect hardware, and high-speed Ethernet adapters both globally and within China.

To secure approval, SAMR required NVIDIA to refrain from bundling its GPU accelerators with Mellanox interconnect products in China or imposing unreasonable terms. The company was also barred from restricting customers’ ability to purchase either product independently, forcing non-discriminatory supply terms, and ensuring the ongoing interoperability of its GPUs and Mellanox devices with third-party equipment. Additionally, NVIDIA had to honor Mellanox’s commitment to open-source communication software.

The regulator retains authority to monitor compliance through trustees or direct inspections, and it may impose penalties under the Anti-Monopoly Law if NVIDIA fails to meet its obligations. These conditions took effect upon the 2020 announcement and remain in place for six years, after which NVIDIA may petition for their removal based on market competition assessments. Until any lifting of these terms, full compliance is mandatory.

Following Chinese approval in April 2020, NVIDIA completed its USD 6.9 billion acquisition of Mellanox, marking its strategic entry into the network interface card sector and accelerating its evolution from a GPU manufacturer into a broader data-center solutions provider.