Fears that Nokia, the world's
biggest mobile phone manufacturer, might muscle out rivals in the burgeoning market
for GPS navigation devices, the European Commission has opened an in-depth investigation
of the Finnish company's plans to acquire Navteq,
an American producer of digital maps, the regulator said Friday.
Navteq is one of two producers of digital maps that cover all of Europe --
the other is Dutch firm Tele
Atlas, itself part of an ongoing in-depth merger investigation by the Commission.
"The Commission's initial market investigation has indicated that the
proposed merger raises serious doubts with regards to vertical competition concerns,"
the Commission said in a statement.
In light of the duopoly in the market for navigable digital maps and Nokia's
strong position on the market for mobile handsets, the deal might "lead
to a significant impediment of competition," it
said.
The Commission has until Aug. 8 to reach a conclusion about the deal.
Meanwhile the separate
probe of TomTom, a Dutch firm hoping to acquire Tele Atlas, has been extended
to May 21, after the regulator and the companies agreed more time would be useful,
Commission spokesman on competition issues, Jonathan Todd, said Friday in an
interview.
The market for satellite navigation devices, which has emerged over the past
five years, is undergoing rapid consolidation.
Garmin,
in the U.S., tried to acquire Tele Atlas last year but withdrew its offer after
being outbid by TomTom.
Garmin, meanwhile, struck a deal with Navteq, giving the device maker access
to Navteq's maps until 2015.
