China’s State Administration for Market Regulation (SAMR) announced Monday that a preliminary investigation found Nvidia violated the country’s antitrust law after failing to comply with conditions imposed on its acquisition of Mellanox Technologies. The agency said it will conduct a further investigation before determining penalties.

Nvidia completed its $6.9 billion acquisition of Mellanox in 2020. SAMR approved the deal on the condition that the company maintain fair competition in markets related to data transmission and networking equipment. SAMR started its review of Nvidia’s compliance with these conditions in December 2024.

Under China’s Anti-Monopoly Law , regulators may impose conditions on mergers that could affect market competition and can sanction companies that f

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