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Nvidia (NVDA, Financials) filed a lawsuit against the European Commission, contesting an investigation into its $700 million acquisition of Israeli software firm Run:ai, Reuters said Monday.
Filed at the General Court in Luxembourg, the action claims that whilst not fulfilling the EU's merger control criteria, the European Commission illegally granted Italy's demand to examine the agreement.
Usually, the Merger Regulation of the European Union calls for probes only if certain revenue targets are reached. Under its national Competition Act, Italy, however, expressed concerns and set off an EU-level investigation. By approving the inquiry based on what Nvidia regards as weakly defined discretionary powers, the commission abused its jurisdiction, according to the firm.
Although the action has no bearing on the purchase itself, the result might affect future EU control of mergers and acquisitions, especially those involving semiconductor companies and artificial intelligence companies.
Run:ai was acquired by Nvidia in December 2024. Israeli startup Run:ai develops AI workload management software that runs numerous processes in parallel to optimize GPU utilization. It plans to open-source its tools to promote compatibility outside of Nvidia's hardware.
Regarding the complaint, the European Commission has not offered comments.
This article first appeared on GuruFocus.