Why NVIDIA is facing antitrust investigation in France
NVIDIA is currently under investigation by French authorities for alleged anti-competitive practices. Benoit Coeure, president of Autorité de la concurrence (France's national competition regulator), stated that charges would be brought against NVIDIA if the investigation "was fruitful." The specific charges that NVIDIA might face remain undisclosed. According to Reuters, the probe is related to activities within the cloud computing industry. The outcome could be potentially damaging for NVIDIA, risking substantial fines if found guilty of violating competition laws.
France first to charge NVIDIA for anti-competitive practices
France is the first regulatory body preparing to charge NVIDIA for alleged anti-competitive practices. French authorities have previously expressed concerns over NVIDIA's dominance in the generative AI market, suggesting that this could create an environment ripe for exploitation by chip makers. In September 2023, The Wall Street Journal reported a raid on NVIDIA's offices in France. This action was reportedly part of a broader investigation into the cloud computing industry.
NVIDIA's dominance in AI market raises concerns
NVIDIA's dominance in the generative AI market has raised concerns among French authorities. They have pointed out the industry's reliance on NVIDIA's hardware and CUDA software, suggesting that this could lead to potential exploitation by chip makers. It is estimated that NVIDIA could control up to 94% of the data center GPU market, further emphasizing its significant influence in the industry.
