European Union: Opened EC investigation into the proposed acquisition of Run:ai Labs by NVIDIA under the EU Merger Regulation

On 31 October 2024, the European Commission (EC) opened an investigation into the proposed acquisition of Run:ai Labs (Run:ai) by NVIDIA. The acquisition was examined by Italy under national competition rules, which referred it to the EC under Article 22 of the EU Merger Regulation (EUMR), which allows a member state to refer a merger if it is believed to significantly affect competition within its territory and the EU single market, even if the transaction is below the usual EU-wide turnover thresholds for notification. The EC concluded the case meets the conditions for referral, and that it is well placed to examine that transaction, given its history with similar cases in AI, technology and digital infrastructure. The EC noted that the transaction could significantly affect competition in the markets where NVIDIA and Run:ai are active. Furthermore, the EC required NVIDIA to notify the transaction and specified that NVIDIA cannot implement the transaction before obtaining approval.