Nvidia (NASDAQ:NVDA) responded to China’s antitrust concerns on Monday, and said it will cooperate with all relevant agencies.
“We comply with the law in all respects,” an Nvidia spokesperson told Seeking Alpha. “We will continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets.”
Shares of the Jensen Huang-led chipmaker hugged the flat line in midday trading, having erased almost of their earlier losses.
On Monday, China’s State Administration for Market Regulation said a preliminary investigation found Nvidia’s deal to acquire Mellanox Technologies in 2020 deal breached competition rules.
The regulator noted that certain conditions imposed when China initially approved the deal were not met, though it did not provide details on the alleged breaches. Nvidia bought Mellanox, an Israeli technology company that provides networking solutions for data centers and servers, in a $7B deal that strengthened its AI and cloud computing position.
Late last year, the Chinese antitrust agency opened an investigation into the U.S. chipmaker in relation to the deal and some agreements made during the acquisition.