France, the antitrust investigation into NVIDIA is nearing its final stages: a decision is getting closer

The French competition authority is approaching the conclusion of the investigation launched against NVIDIA, a proceeding that could turn into the first significant European case dedicated to the dominant position of the American manufacturer in the artificial intelligence chip market.

The investigation, initiated several years ago, has now entered the final phase, as confirmed by the general rapporteur of the Autorité de la concurrence, Umberto Berkani, who stated that the investigative work is now close to completion without specifying a date for a final decision.

The origin of the case dates back to September 2023, when French authorities conducted a search at NVIDIA's local offices as part of a broader investigation into the cloud computing sector. Over the months, the scrutiny has focused directly on the Californian company, evolving into an antitrust case dedicated exclusively to its activities.

One of the main elements under evaluation concerns CUDA, the proprietary software environment developed by NVIDIA that allows developers to harness the computing power of GPUs. This platform is a key factor in the current AI ecosystem, being the only fully compatible toolkit with GPUs used for training large-scale generative AI models. Such dependence may make it more challenging for competitors to enter the market and further strengthen the company’s position.

The other front of the investigation relates to NVIDIA’s network of investments in various companies active in the cloud sector, including CoreWeave. According to regulators, these stakes could further consolidate an already highly concentrated market. Various estimates attribute to the company more than 70% of global sales of accelerators intended for artificial intelligence, a percentage that some analysts believe is set to increase with the arrival of new generations of GPUs.

The scrutiny of NVIDIA is not limited to France. Authorities in the United States, European Union, and China have also examined various aspects of the company's business practices in recent years.

The French inquiry is proceeding according to the timelines set by competition law. If investigators find the evidence collected to be sufficiently strong, the next step would be the issuance of a formal communication of the charges. This document would not represent a condemnation but rather the official start of the proceeding, allowing NVIDIA to present a defense and participate in a hearing before the final decision of the authority.

It will then be the board of the Autorité de la concurrence to assess the collected elements and determine whether there has been a violation of competition norms, deciding on any sanctions. French law provides for fines of up to 10% of a company's global annual revenue in cases of abuse of dominant position, in addition to the possibility of imposing specific behavioral remedies or accepting binding commitments that avoid the application of a financial penalty.

NVIDIA has always maintained that it operates in compliance with competition regulations and competes solely based on the technological merits of its solutions.