U.S. chipmaker Nvidia has filed a lawsuit against EU antitrust regulators for accepting an Italian request to review its acquisition of AI startup Run:ai, arguing they exceeded their merger powers.
While the lawsuit does not impact the deal, which the European Commission approved in December, a ruling in Nvidia’s favor could further limit the regulator’s authority over smaller mergers.
The dispute centers on the EU’s use of Article 22, a provision allowing regulators to review acquisitions that fall below the merger revenue threshold. The European Commission has justified the practice by citing concerns over “killer acquisitions,” where large companies acquire startups to eliminate competition.
However, businesses have criticized the move as regulatory overreach.
In September, Europe’s highest court ruled that the Commission cannot accept referrals for deals lacking a European dimension if national regulators lack the authority to assess them under their own laws. Nvidia cited this ruling in its lawsuit, filed with the Luxembourg-based General Court.
“The decision unlawfully accepted a referral request from the Italian Autorità Garante della Concorrenza (AGCM) regarding a transaction that fell below EU and national merger control thresholds,” Nvidia stated in its filing. The company argued that the regulators’ actions violated principles of institutional balance, legal certainty, proportionality, and equal treatment.
A favorable ruling for Nvidia could set a precedent limiting EU regulators’ ability to intervene in small acquisitions, potentially reshaping the Commission’s approach to merger oversight.
