China Launches Antitrust Probe Into Qualcomm, Shares Drop 3%

China’s State Administration for Market Regulation (SAMR) has opened an investigation into U.S. chipmaker Qualcomm Incorporated (NASDAQ: QCOM) over alleged violations of the country’s anti-monopoly laws, according to a report by Bloomberg on Friday.

The probe focuses on whether Qualcomm has engaged in business practices that breach China’s competition regulations, potentially impacting its operations in one of its most significant markets. While details of the alleged violations remain undisclosed, such investigations can carry major implications for global tech firms operating in China’s semiconductor industry.

Following the news, Qualcomm shares fell over 3% in pre-market trading, reflecting investor concerns about the potential regulatory and financial consequences of the inquiry.

The move underscores Beijing’s continued scrutiny of major foreign technology companies as part of its broader push to enforce antitrust compliance and maintain fair competition in its domestic markets.