Nvidia, Run:ai deal to be reviewed under EU’s merger rules

The European Commission said it has accepted the request submitted by Italy to assess the proposed acquisition of Run:ai Labs Ltd by Nvidia (NVDA) under the EU Merger Regulation. The proposed acquisition does not reach the notification thresholds set out in the EUMR. It was notified in Italy, as required by the Italian Competition Act, upon request by the national competition, which used its “call in” powers. Such powers enable the Italian competition authority to review transactions not meeting the relevant national turnover thresholds when it finds that they pose concrete risks for the competition and other conditions laid down in the Italian Competition Act are met. On the basis of the information at the Commission’s disposal, and without prejudice to the outcome of its full investigation, the Commission considers that the transaction meets the criteria under Article 22 of the EUMR. In particular, the transaction threatens to significantly affect competition in the markets where Nvidia and Run:ai are active, which are likely to be at least European Economic Area-wide and include the country Italy. The Commission also concluded that it is best placed to examine the transaction given its knowledge and case experience in related markets. Nvidia cannot implement the transaction before notifying and obtaining clearance from the Commission.