Antitrust tensions are escalating in the chipmaking industry as Nvidia, a prominent player in the market, faces accusations of abusing its market dominance. The U.S. Justice Department has initiated an investigation into complaints from rivals alleging that Nvidia is engaging in anti-competitive practices.
According to reports from The Information, Justice Department officials are examining concerns that Nvidia may be monopolizing the market and exerting pressure on its customers to maintain business relationships unfairly. Allegations include claims that Nvidia has threatened repercussions against customers who purchase products from both Nvidia and its competitors.
The Information also revealed that U.S. officials have contacted several Nvidia competitors to gather more information regarding the complaints. The Justice Department declined to comment on the matter when approached by the media.
In response to the allegations, Nvidia released a statement asserting that the company competes based on merit, emphasizing its long history of investment and innovation while ensuring compliance with all laws. The company expressed willingness to cooperate with regulators and provide any necessary information.
This is not the first time Nvidia has faced calls for antitrust scrutiny. Recently, progressive advocacy groups and Democratic lawmakers have urged the Department of Justice to investigate Nvidia's business practices. These groups argue that Nvidia, as a dominant player in the chip industry, has used tactics such as controlling scarce supply and restricting customer choices to maintain its position in the market.
Nvidia, known for its role in the artificial intelligence sector, has experienced significant growth and market value, briefly surpassing a market value of $3.3 trillion in June. However, the company's stock has faced some volatility, with shares declining by 3% on Friday afternoon.
