Anti-monopoly

Qualcomm’s shares dipped following China’s announcement of an investigation into its Autotalks acquisition for potential anti-monopoly violations. This probe, initiated by China’s SAMR, occurs amid heightened US-China tensions and ahead of crucial diplomatic talks. It follows similar scrutiny of Nvidia and tightened export restrictions on rare earth elements. The investigation raises concerns about Qualcomm’s business in China, potentially disrupting its supply chain and competitive advantage. Analysts view China’s actions as strategic moves to gain leverage in trade negotiations and assert regulatory authority in the tech sector.