Nvidia has initiated legal action against European Union (EU) antitrust regulators, contesting their decision to investigate its acquisition of Israeli AI startup Run:ai, reported Reuters.

The US chipmaker argues that the European Commission disregarded a prior court ruling that limited its ability to review minor mergers.

Although the legal challenge does not affect the Run:ai deal, which was approved by the EU competition authority in December 2024, a ruling in Nvidia’s favour could further restrict the regulator’s merger oversight.

Nvidia acquired the Israeli AI company for $700m (NIS2.51bn) in December 2024, after undergoing scrutiny from competition authorities.

In recent years, businesses have raised concerns about the European Commission’s use of Article 22, a provision that allows it to examine deals even when they fall below the EU’s merger revenue threshold.

However, the Commission has defended this approach, citing fears of so-called “killer acquisitions,” where major companies buy startups with the intent to eliminate competition. However, firms have criticised this practice as regulatory overreach.

A ruling by Europe’s highest court in September 2024 limited the Commission’s power to accept referrals from national regulators that do not have the authority to examine such deals under their own laws.

Nvidia referenced this ruling in its lawsuit filed with the Luxembourg-based General Court.

The company was quoted by the news agency as saying: “The decision unlawfully accepted a referral request from the Italian Autorità Garante della Concorrenza (AGCM), regarding a transaction that fell below the EU Merger Regulation and member state merger control thresholds, based on the AGCM’s exercise of loosely defined, ex post, discretionary call-in powers.”

Founded in 2018, Run:ai provides software for workload management and orchestration, helping enterprises optimise AI infrastructure across cloud, edge, and on-premises environments.