A visitor tries a smart product equipped with Snapdragon processor at the Qualcomm booth in the Digital Technology Chain area of the third China International Supply Chain Expo (CISCE) in Beijing, capital of China, July 19, 2025. The 2025 CISCE, scheduled from July 16 to 20, opened to general public on Saturday. Photo: Xinhua

A spokesperson for the State Administration for Market Regulation (SAMR) on Sunday addressed reporters' questions regarding the investigation into Qualcomm for violating China's Anti-Monopoly Law, saying that this is a routine enforcement action carried out by the SAMR in accordance with the law, a move that an expert said is lawful and reasonable to safeguard fair market competition and stems from the company's misconduct.

The SAMR has launched an investigation into Qualcomm for suspected violation of the country's Anti-Monopoly Law. The case was filed because in its acquisition of Autotalks, Qualcomm failed to declare the concentration of undertakings in accordance with the law, the market regulator said in an online announcement on Friday.

The spokesperson explained in an official statement on Sunday that in May 2023, Qualcomm announced its acquisition of Autotalks. After receiving a tip-off, the SAMR conducted a comprehensive review of the transaction and determined that, although it fell below the mandatory filing threshold, there was evidence that it could have - or was likely to have - an anticompetitive effect of excluding or restricting competition," per an official statement by the SAMR.

On March 12, 2024, in line with Article 26 of the Anti-Monopoly Law, the SAMR sent Qualcomm a written notice requiring it to file for the merger and prohibiting any implementation until the filing was submitted or approved. On March 14, Qualcomm wrote to the SAMR, stating that it was dropping the deal, said the statement.

The statement added that in June 2025, Qualcomm went ahead and completed the acquisition of Autotalks without making any filing or engaging in any communication with the Chinese regulator. 

"Following the tip-off, we verified the details, and Qualcomm acknowledged the facts. With the facts clear and the evidence solid, we have launched a formal investigation into Qualcomm's unlawful implementation of this merger without prior approval," the spokesperson said.

Dong Shaopeng, a senior fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Sunday that Qualcomm's move to renege on its commitments and quietly finalize the acquisition blatantly breached the principles of good faith, as well as China's relevant laws and regulations. 

"Any company operating in China - no matter where it's based - must strictly follow Chinese laws and regulatory requirements," Dong said, adding that the regulator's response here is a straightforward, routine enforcement action designed to protect fair market competition.

This investigation was squarely on whether the acquisition itself violated reporting requirements, analysts said. Under Article 21 of the Anti-Monopoly Law, when their intended concentration reaches the threshold level as set by the State Council, undertakings shall declare in advance to the authority for enforcement of the Anti-monopoly Law under the State Council; they shall not implement the concentration in the absence of such declaration. 

Dong emphasized that Qualcomm, fully aware of the risks, still pushed ahead with the deal in violation of the rules, a move that not only justifies a formal probe but also signals a clear lack of respect for Chinese law.

Autotalks is a fabless semiconductor company founded in 2008, specializing in V2X communications. It pioneered the industry's first purpose-built V2X chipset and has continued to lead the industry with innovative, cutting-edge V2X solutions, according to Qualcomm's official website.

On June 5, 2025, Qualcomm Inc announced on its official website that its subsidiary, Qualcomm Technologies, had completed the acquisition of Autotalks. 

Dong viewed the Autotalks acquisition as a clear milestone in Qualcomm's transition from consumer electronics into the smart automotive space, and he noted that the ongoing antitrust probe against Qualcomm will have a direct bearing on its automotive ambitions.

"Moving forward, the SAMR will continue to advance the probe in line with the law, maintaining objectivity and fairness throughout the process," the regulator's statement said.