Opening Day Of Mobile World Congress 2015
Photograph by Pau Barrena/Bloomberg via Getty Images

EU Antitrust Watchdogs Are Looking Into Qualcomm’s $38 Billion Bid for NXP

Jun 09, 2017

EU antitrust authorities opened an investigation on Friday into Qualcomm's $38-billion bid for NXP Semiconductors, ratcheting up pressure on the U.S. smartphone chipmaker to offer concessions to address their concerns.

Qualcomm, which supplies chips to Android smartphone makers and Apple, is set to become the leading supplier to the fast growing automotive chip market following the deal, the largest-ever in the semiconductor industry.

The European Commission listed a raft of concerns about the combined company's ability and incentives to squeeze out rivals and jack up prices. It said the company may bundle its products, excluding rivals in baseband chipsets and near field communication (NFC) chips.

The combined entity would also have the ability and the incentive to change NXP's intellectual property licensing practices, in particular the NFC technology, by tying this to Qualcomm's patent portfolio, the EU watchdog said.

It also voiced concerns about reduced competition in semiconductors used in cars. The Commission will decide on the deal by Oct. 17.

Qualcomm (qcomm) said it was confident of allaying the EU's worries and that it still expects to close the deal by the end of the year. U.S. antitrust enforcers gave the green light for the deal in April without demanding concessions.

Reuters reported on June 2 that Qualcomm may face a lengthy EU investigation after it declined to offer concessions to address the bloc's concerns in a preliminary review.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions