European Union: Announced European Commission investigation into proposed acquisition of Autotalks by Qualcomm

On 18 August 2023, the European Commission announced it had opened an in-depth investigation of Qualcomm's proposed acquisition of Autotalks based on requests from 15 EU Member States. Qualcomm is a semiconductor manufacturer based in the US that specialises in chipsets that enable direct communication between vehicles and their environment in the automotive sector (V2X communications). The Autotalks is an Israeli semiconductor manufacturer that focuses on producing V2X semiconductors. In particular, the Commission is investigating whether customers such as original equipment manufacturers or infrastructure operators can continue to obtain access to V2X technology at competitive prices and conditions. Although the acquisition doesn't meet the standard notification thresholds, Belgium, France, Italy, the Netherlands, Poland, Spain, Sweden, and other EEA countries invoked Article 22(1) of the EU Merger Regulation. At this preliminary stage and pending a comprehensive investigation, the European Commission deems the transaction suitable for referral under Article 22 of the EU Merger Regulation. As a result, Qualcomm has been instructed to notify the transaction, and its implementation is contingent on receiving clearance from the Commission.