Qualcomm Inc. has decided to withdraw its plans to acquire Autotalks Ltd. The Federal Trade Commission (FTC) Bureau of Competition Director, Henry Liu, stated earlier this week that the company's decision will safeguard innovation and price competition in the vehicle-to-everything (V2X) chipsets market.
"This is a win for car buyers seeking quality, affordable cars with V2X communication capabilities that promise to make driving easier and safer," said Liu, according to Federal Trade Commission. "The termination of this proposed transaction will preserve vigorous innovation and price competition in the market for vehicle-to-everything (V2X) chipsets and related products used in automotive safety systems. Based on its probe into this proposed merger, FTC staff was concerned that the deal might harm competition in markets for V2X chipsets and related products."
According to a press release from Qualcomm, the company had announced a definitive agreement to acquire Autotalks on May 8, 2023. Autotalks is known for providing automotive-qualified dual-mode global V2X solutions that are compatible with various V2X standards. These solutions aim to decrease collisions and enhance mobility. In the press release, Qualcomm, a player in the automotive industry for two decades, expressed its commitment to speeding up the development and adoption of V2X solutions.
The same press release from Qualcomm also mentioned that if the acquisition had proceeded, it would have incorporated a production-ready, dual-mode Autotalks standalone safety solution into its Qualcomm Technologies’ Snapdragon Digital Chassis product portfolio.
Yahoo! Finance reported that antitrust regulators in Europe, the United Kingdom, and Israel have also launched investigations into the deal.
