EU watchdog probes Nvidia hardware bundling as it scrutinises Run:ai deal

By Foo Yun Chee

BRUSSELS (Reuters) – EU antitrust regulators are asking Nvidia (NASDAQ:) customers if they have been offered discounts to buy the company’s graphics processing unit (GPU) software products together with its hardware as they scrutinise its $700 million bid for Run:ai.

In a questionnaire seen by Reuters, the EU watchdog focused on potential practices that could tighten Nvidia’s grip on GPUs, where it has a near-monopoly with an 84% market share, far ahead of rivals Intel (NASDAQ:) and AMD (NASDAQ:).

GPUs are chips that break down a computer task into smaller pieces and process them together. They are highly sought after by technology companies for their data centres, by video game console makers, and even by bitcoin miners.

The European Commission, which acts as the European Union’s competition enforcer, has previously warned that the deal threatens competition in markets where the two companies operate and has set a Dec. 20 deadline for its preliminary review.

“Does a company that offers a bundle of GPU Orchestration Software (ETR:) and hardware/GPU have a competitive advantage?” the Commission document asked Nvidia customers. 

“To your knowledge, have end-users been required or induced (for example, with discounts) to purchase GPU Orchestration Software as a bundle together with software or other hardware?”

Respondents were also asked about the impact of the deal on their business if Nvidia were to run Run:ai as open-source.

Nvidia was not immediately available for comment.