China’s market regulator announced on Monday that a preliminary investigation revealed Nvidia, the U.S. chip giant, had violated the country’s anti-monopoly law. As a result, China will conduct an additional probe into Nvidia’s business practices. The specifics of the alleged violations were not disclosed in the statement released by the Chinese regulatory authority.

This development comes amid increasing global scrutiny of major tech companies for potential anti-competitive behavior. Nvidia, known for its advanced graphics processing units and data center chips, has a significant presence in the global semiconductor industry. The outcome of China’s investigation could have implications for Nvidia’s operations in one of the world’s largest markets.

In response to the announcement, Nvidia may face challenges in navigating the regulatory landscape in China. The company’s compliance with anti-monopoly regulations will be closely monitored as the investigation progresses. Industry experts suggest that regulatory actions in China could impact Nvidia’s market position and future business strategies in the region.

A White House official, speaking on condition of anonymity, stated, “It is crucial for companies like Nvidia to adhere to the laws and regulations of the countries where they operate. This case underscores the complexities and challenges faced by multinational corporations in navigating the regulatory environments of different jurisdictions.”

Nvidia has not issued a public statement regarding China’s findings of anti-monopoly violations at this time. The company’s response to the investigation and any potential legal repercussions will be closely watched by investors and industry observers as the situation unfolds.