U.S. chipmaker Nvidia (NASDAQ: NVDA) has taken EU antitrust regulators to court, challenging their decision to investigate its acquisition of AI startup Run:ai based on a request from Italy last year. The company claims the European Commission ignored a recent ruling limiting its authority over smaller mergers, accusing regulators of bending the rules.
Nvidia filed its lawsuit with the General Court in Luxembourg, Europe’s second-highest judicial body. The case hinges on the EU’s acceptance of a referral from Italy’s competition watchdog, the Autorità Garante della Concorrenza e del Mercato (AGCM), to scrutinize the Run:ai deal.
The Santa Clara-based chipmaker argues that the transaction didn’t meet the revenue thresholds outlined in the EU Merger Regulation or member states’ merger control laws. Instead, the company says Italy’s request relied on vague, discretionary powers applied after the deal was already in motion—an approach Nvidia calls unlawful.
The chipmaker contends that the EU’s decision to take up the Italian referral violates fundamental principles, including institutional balance, legal certainty, proportionality, and equal treatment.
Nvidia (NASDAQ: NVDA) points to a major ruling from Europe’s top court in September 2024, which declared that the European Commission can’t accept referrals from national regulators for deals without a clear “European dimension” if those regulators lack jurisdiction under their own national laws. The company says this should have stopped the Run:ai review in its tracks.
While the EU approved the Run:ai acquisition in December 2024, the lawsuit does not affect the deal itself. However, Nvidia’s challenge has broader implications. A win could further weaken the European Commission’s ability to police smaller mergers—a practice that has stirred controversy in recent years.
Under a little-used rule called Article 22, the EU has stepped up scrutiny of deals below standard revenue thresholds, arguing it’s necessary to catch “killer acquisitions.” These are cases where big firms buy startups to snuff out potential competition. Businesses, however, see it as regulatory overreach and Nvidia’s stance echoes that frustration.
The growing clash between tech giants and EU authorities reflects unease over how regulators wield power in the fast-evolving tech landscape. Companies worry that the Commission’s aggressive use of Article 22 threatens their ability to snap up innovative startups without drawn-out reviews. Nvidia’s lawsuit could tip the scales, potentially limiting the EU’s reach into deals that don’t hit traditional financial benchmarks.
For now, the General Court holds the key to whether Nvidia’s (NASDAQ: NVDA) argument holds water. The ruling could reshape how the EU approaches merger oversight, especially for smaller but strategically significant acquisitions in fields like AI. Investors and industry watchers will be tracking the case closely as it unfolds.
