Core Viewpoint - Qualcomm is under investigation by China's State Administration for Market Regulation for allegedly failing to legally declare its acquisition of Autotalks, which may violate the Anti-Monopoly Law of the People's Republic of China [1][2]. Group 1: Acquisition Details - Qualcomm announced on May 8, 2023, that its subsidiary Qualcomm Technologies, Inc. reached an acquisition agreement with Autotalks, initially valued at $350 million [1]. - The acquisition faced delays due to U.S. regulatory approvals and was completed on June 5, 2025, with plans to integrate Autotalks' products into Qualcomm's Snapdragon digital chassis [1]. - Autotalks, established in 2008, specializes in V2X communication technology, which enhances road safety and transportation efficiency by enabling direct communication between vehicles and their environment [1]. Group 2: Regulatory Context - Autotalks has been actively expanding its V2X market presence in China and has already been adopted by at least two Chinese automotive manufacturers, necessitating Qualcomm to seek regulatory approval for the acquisition [2]. - The investigation into Qualcomm's acquisition is deemed legal and compliant, with potential consequences including fines or the requirement to divest parts of Autotalks' business [2]. Group 3: Previous Investigations - This marks Qualcomm's second antitrust investigation in China; the first occurred in February 2015, resulting in a fine of 6.088 billion yuan for abusing its market dominance [3]. - The current issue revolves around procedural compliance, as Qualcomm completed the transaction without submitting the required declaration to Chinese authorities, which is mandatory when certain thresholds are met [3].

Core Viewpoint - Qualcomm's acquisition of Autotalks has raised concerns from China's antitrust authority due to the lack of legal notification regarding the merger, which is seen as a potential violation of the Anti-Monopoly Law of the People's Republic of China [3][9][13]. Group 1: Acquisition Details - Qualcomm initiated the acquisition of Autotalks in 2023, previously abandoning it due to global antitrust pressures, but later resumed and completed the deal without notifying the Chinese market regulator [3][6]. - The acquisition was announced on June 5, 2023, with a transaction value estimated between $350 million and $400 million [6][10]. - Autotalks, founded in 2008, specializes in V2X technology, which supports autonomous driving systems through real-time data exchange between vehicles and surrounding infrastructure [3][6]. Group 2: Regulatory Scrutiny - The Chinese State Administration for Market Regulation (SAMR) has launched an investigation into Qualcomm for allegedly failing to report the acquisition, which may violate the Anti-Monopoly Law [3][9]. - The UK's Competition and Markets Authority (CMA) also expressed concerns about the acquisition, leading Qualcomm to terminate the deal in March 2024 due to regulatory pressures [6][7]. - The investigation by SAMR indicates that Qualcomm's acquisition may have implications for market competition, as it did not meet the legal reporting standards but could still be deemed to restrict competition [8][10]. Group 3: Financial Impact - Following the announcement of the investigation, Qualcomm's stock price fell by 7.29% on October 10, 2023, reflecting investor concerns over the regulatory scrutiny [4][6]. - Qualcomm's revenue from China, including Hong Kong, was $17.826 billion for the fiscal year 2024, accounting for 45.75% of its total revenue, highlighting the importance of the Chinese market to the company [14].