EU regulators are investigating NVIDIA's hardware bundling practices in the review of the Run:ai acquisition case
The EU antitrust regulator is reviewing NVIDIA's acquisition of Run:ai and investigating whether customers can receive discounts on GPU software when purchasing hardware. NVIDIA holds an 84% share of the GPU market, and regulators are concerned that the deal could further strengthen its market control. The deadline for the preliminary review is December 20, and the European Commission has asked customers about the competitive advantages of bundling and its impact on their businesses
According to the Zhitong Finance APP, the EU antitrust regulatory agency is reviewing NVIDIA's (NVDA.US) $700 million acquisition of Run:ai. At the same time, they are inquiring whether NVIDIA's customers receive discounts when purchasing the company's graphics processing unit (GPU) software products alongside hardware.
In a survey seen by foreign media, the EU regulators are concerned about potential practices that may strengthen NVIDIA's control over GPUs. NVIDIA holds nearly 84% of the market share in the GPU sector, far ahead of competitors Intel (INTC.US) and AMD (AMD.US).
GPUs are chips that break down computer tasks into smaller parts and process them together. They are highly sought after by data centers of tech companies, video game console manufacturers, and even Bitcoin miners.
The European Commission, as the EU's competition enforcement agency, previously warned that the deal threatens competition in the markets where the two companies operate, setting a deadline for the preliminary review on December 20.
In the documents, the European Commission asked NVIDIA's customers: "Does a company that offers GPU orchestration software and hardware/GPU bundles have a competitive advantage?" "To your knowledge, are end users required or induced (e.g., through discounts) to purchase bundled GPU orchestration software with software or other hardware?"
Respondents were also asked how this deal would impact their business if NVIDIA operated run:ai as open-source software