Nvidia is now being investigated for ‘market dominance’ by the U.S. Department of Justice due to complaints from its competitors.
NVDA stock closed down nearly 2% on Friday after falling more than 3.5% during premarket hours.
DOJ investigators are looking at whether Nvidia pressured ‘cloud providers’ to buy multiple products, the report said, citing people involved in the discussions.
The investigation is also looking into whether Nvidia charges its customers more for networking gear if they want to buy AI chips from rivals such as Advanced Micro Devices, and Intel, it added.
Nvidia dominates approximately 80% of the AI chip market.
“We compete based on decades of investment and innovation, scrupulously adhering to all laws, making Nvidia openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them,” a Nvidia spokesperson said in a statement to Reuters.
The DOJ did not immediately respond to Reuters’ request for comment late Thursday, per the outlet.
However, the report did state that investigators have reached out to several of Nvidia’s competitors to gather more details and evidence.
U.S. progressive groups and Democratic Senator Elizabeth Warren have also pressed the DOJ to investigate Nvidia over competition concerns.
The groups, which oppose monopolies and promote government oversight of tech companies, among other issues, took aim at Nvidia’s bundling of software and hardware, a practice that French antitrust enforcers have also flagged as they prepare to bring their own charges, per Reuters.
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Also Read: SEC Now Charges CEO For Whopping $170 Million Fraud Scheme
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GameStop’s Ryan Cohen has now been dragged in a lawsuit for insider trading, and allegedly profiting tens of millions of dollars illegally.
The company formerly known as Bed Bath & Beyond Inc. has sued Ryan Cohen and his company RC Ventures LLC, alleging that they engaged in insider trading and made $47 million in illegal profits.
Cohen is the founder of Chewy Inc. and the chairman and CEO of GameStop Corp. Between January and August 2022, while Cohen and RC Ventures were acting as statutory directors of Bed Bath & Beyond, they allegedly used insider information to make profitable trades in Bed Bath & Beyond’s stock.
The bankrupt Bed Bath & Beyond company claims it is entitled to recover these “short-swing” trading profits under securities law, since Cohen and RC Ventures were acting as directors and also beneficially owned more than 10% of Bed Bath & Beyond’s stock, per Bloomberg.
This lawsuit is part of the company’s broader efforts to recover funds for its creditors as it goes through bankruptcy proceedings.
The company has also sued a New Jersey agency to recover $19 million in tax credits, and is seeking to recover over $300 million in trading profits from another hedge fund involved in a failed financing plan.
RC Ventures is currently the largest shareholder of GameStop, owning an 8.7% stake as of June 2023.
James A. Hunter of Radnor, Pa., represents the plaintiff.
The case is 20230930-DK-BUTTERFLY-I Inc. v. Cohen, S.D.N.Y., No. 1:24-cv-05874, complaint filed 8/1/24.
This is a developing story.
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Also Read: Foreign Markets Are Now Imposing Bans For Illegal Trading
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