China Launches Anti-Monopoly Probe into Qualcomm's Autotalks Acquisition

Chinese Regulators Investigate Qualcomm-Autotalks Deal

China's State Administration for Market Regulation (SAMR) has launched an antitrust investigation into Qualcomm's acquisition of Autotalks, an Israeli developer of vehicle-to-everything (V2X) communication chips. The probe, announced on Friday, October 10, 2025, centers on whether the US chipmaking giant violated China's Anti-Monopoly Law by allegedly failing to properly disclose aspects of the transaction or report the concentration of undertakings.

This investigation introduces fresh uncertainty for Qualcomm, a company for which China represents a crucial market, accounting for a significant portion of its revenue, estimated to be over 45% or even 60% by some reports.

Background of the Acquisition

Qualcomm, based in San Diego, finalized its acquisition of Autotalks in June for a reported sum of less than $100 million. This figure represents a substantial discount from the initial valuation of $350-400 million when the deal was first announced in 2023. The acquisition process was protracted, with Qualcomm initially abandoning its bid in 2024 due to delays in securing regulatory clearance, only to revive and complete the agreement later.

Autotalks specializes in developing V2X communication chips that enable vehicles to transmit vital data, such as speed, location, and braking information, to other cars and infrastructure. This technology is designed to enhance road safety by preventing collisions and is integrated into Qualcomm's Snapdragon Digital Chassis for assisted and autonomous driving.

Nature of the Anti-Monopoly Concerns

The SAMR's scrutiny focuses on potential violations related to merger-notification requirements under China's Anti-Monopoly Law. While specific details of the alleged non-disclosure have not been fully revealed, the investigation suggests that Qualcomm may have failed to report the transaction as a 'concentration of undertakings,' which is mandatory for significant mergers. According to legal experts, Qualcomm could face a fine of up to 5 million yuan (approximately US$702,000) for not seeking prior approval. Further penalties could be imposed if the regulator determines the deal had the effect of 'eliminating or restricting market competition.'

Broader Geopolitical Context

This probe is widely viewed as the latest development in the escalating technology and trade tensions between the United States and China. The timing of the investigation follows a similar accusation made by Chinese regulators against Nvidia last month, indicating a broader trend of increased scrutiny on US semiconductor companies. Qualcomm has a history of facing antitrust challenges in China, having paid a substantial $975 million fine in 2015 to resolve a previous antitrust case.

The renewed regulatory pressure comes as both Washington and Beijing continue to engage in disputes over technology access, export controls, and economic ties, making cross-border mergers and acquisitions increasingly complex for global tech firms.