EU investigating Nokia's Navteq deal

 

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By Reuters

Posted on 31 Mar 2008 at 12:08

The European Commission has opened an investigation into Nokia's proposed acquisition of digital map supplier Navteq.

The $8.1 billion deal, which would be Nokia's largest ever takeover, won approval from the US Federal Trade Commission in December, however, the EC believes the deal requires further scrutiny.

"The Commission's initial market investigation has indicated that the proposed merger raises serious doubts with regards to ... competition concerns," it says in a statement.

"The Commission now has until 8 August 2008 to take a final decision on whether the proposed transaction would significantly impede effective competition within the European Economic Area or a significant part of it," the statement continues.

The investigation will assess whether the acquisition will increase the cost of navigable digital maps for other companies providing navigation services or limit their access to these maps, and as a consequence harm consumers.

The EU likens the investigation to that being conducted on the proposed acquisition of Tele Atlas by TomTom, which it claims raises a number of similar issues.

The Navteq transaction will give Nokia a stronghold in the navigation business, one of the fastest-growing segments in the technology industry.