Nvidia stock drops 3% after China accuses it of anti-monopoly breach

Nvidia’s stock dropped 3% on Monday morning after Beijing publicly accused the company of breaking China’s anti-monopoly ￰0￱ allegation came from China’s State Administration for Market Regulation (SAMR), which said a preliminary probe had found that Nvidia didn’t follow the rules tied to its 2020 acquisition of Israeli chipmaker Mellanox ￰1￱ to SAMR, Nvidia may have violated the conditions that China imposed when it approved the Mellanox ￰2￱ agency didn’t stop ￰3￱ said the investigation is still active and would ￰4￱ of Monday, Nvidia has not issued a ￰5￱ accuse Nvidia of breaking its 2020 commitments Back in 2020, Nvidia secured China’s approval to acquire Mellanox — a company that builds networking hardware for data centers and servers — but with strings ￰6￱ deal got greenlit only after Nvidia made specific promises to China’s regulators.

Now, SAMR claims those promises were ￰7￱ said the ￰8￱ is suspected of ignoring obligations it agreed to under the deal’s ￰9￱ agency’s preliminary report said Nvidia’s conduct breached China’s Anti-Monopoly Law, and the regulator confirmed the case is still ￰10￱ announcement sent Nvidia stock tumbling in ￰11￱ ￰12￱ China’s antitrust law, a company found guilty of anti-competitive behavior can be hit with fines ranging from 1% to 10% of its prior year’s ￰13￱ made $17 billion in revenue from China in its last fiscal year, ending January ￰14￱ accounted for 13% of Nvidia’s total sales, based on the company’s most recent annual ￰15￱ penalty could be ￰16￱ is all happening while ￰17￱ Chinese officials meet in Madrid to discuss ￰18￱ say semiconductors are at the top of the agenda, and Nvidia’s name is on the ￰19￱ the ￰20￱ restrictions on advanced chip exports to China, and Beijing tightening its own rules, tensions are already ￰21￱ opens anti-dumping probe into ￰22￱ imports Two days before the SAMR announcement, China’s Ministry of Commerce hit back with another move: it opened an anti-dumping investigation into analog integrated circuits coming from the United ￰23￱ a public statement released Saturday, a ministry spokesperson said, “The ￰24￱ has recently overstretched the concept of national security, abused export controls and long-arm jurisdiction, and maliciously blocked and suppressed China’s chip products and the artificial intelligence industry.” They added that these actions “seriously violated WTO rules” and hurt Chinese ￰25￱ probe follows a complaint by a provincial semiconductor industry association representing Chinese ￰26￱ ministry said the investigation will focus on interface IC chips and gate driver IC chips produced with 40-nanometer or larger process ￰27￱ dumping complaint argues that from 2022 to 2024, ￰28￱ of these chips into China surged by 37%, while prices fell by 52%.

That drop in pricing, they claim, damaged local chip ￰29￱ Commerce Ministry confirmed the case was filed under Chinese law and WTO rules, saying the anti-dumping investigation would be conducted fairly and by the ￰30￱ process is expected to finish by September 13, 2026, but could stretch another six months if “special circumstances” ￰31￱ ministry said Chinese authorities will follow statutory procedures, protect the rights of all involved parties, and issue a final ruling based on ￰32￱ investigation, they said, was not politically motivated, but driven by the interests of local ￰33￱ the ￰34￱ China face off over chip policy, trade routes, and global supply chains, the pressure on Nvidia is growing ￰35￱ company’s silence won’t hold forever, and the risk of a massive fine from Beijing is now very ￰36￱ crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites