[News] China Opens Antitrust Probe Against NVIDIA, Fines Could Hit $5 Billion

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China’s State Administration for Market Regulation (SAMR) has initiated an antitrust investigation into NVIDIA, according to a report by the Economic Daily News. The news has sparked widespread debate, with some observers suggesting that NVIDIA could face fines exceeding $5 billion if found to have engaged in monopolistic practices.

The SAMR has not specified which of NVIDIA’s practices are considered monopolistic, leading to speculation that the move may be a countermeasure against recent U.S. restrictions targeting China’s semiconductor industry.

If antitrust violations are confirmed, NVIDIA could face significant financial penalties. According to HK01, China’s antitrust laws allow fines of up to 10% of a company’s annual revenue. Based on NVIDIA’s 2023 revenue of $10.31 billion in China, potential fines could range from $103 million to $1.03 billion. For severe cases, fines can be doubled or quintupled, potentially reaching as high as $2.06 billion to $5.015 billion.

The Economic Daily report also noted that China previously fined U.S. chip giant Qualcomm RMB 6.088 billion in 2015 under antitrust charges. The fine accounted for 8% of Qualcomm’s 2013 sales in China, marking the highest antitrust penalty at the time. Given this precedent, some speculate that any fine imposed on NVIDIA may remain below RMB 10 billion.

(Photo credit: NVIDIA)