EU probes Qualcomm-NXP semiconductor mega-deal
The EU launched an anti-trust probe Friday into US semiconductor maker Qualcomm's $47-billion purchase of Dutch rival NXP, the biggest ever in the sector.
The European Commission said the "in-depth investigation" came over concerns that the deal would affect competition and lead to higher prices for consumers.
The deal announced in October was aimed at extending Qualcomm's footprint into the internet of things and the automobile sector.
"The commission has concerns that the transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry," the Brussels-base European Commission said in a statement.
EU Competition Commissioner Margrethe Vestager added: "As semiconductors are used in practically every electronic device, we are dependent on them in those devices.
"With this investigation, we want to ensure that consumers will continue to benefit from secure and innovative products at competitive prices."
The commission, the 28-nation EU's executive arm, is responsible for carrying out investigations to uphold free and fair competition in the bloc's single market.
The deal, the largest ever in the semiconductor market, was designed to boost the US company amid falling mobile phone sales and stiff market competition.
Based in the Dutch town of Eindhoven, NXP is a leading maker of chips for the auto industry, as well as for contactless payment systems.
A former division of the Dutch electronics giant Philips, it became independent in 2006.
Vestager has launched a series of anti-trust cases against US firms, winning praise in Europe but angering Washington.
© 2017 AFP