updated 12:40 pm EDT, Fri March 28, 2008
Europe probes Nokia/NAVTEQ
The European Commission has begun a serious investigation into Nokia's planned purchase of NAVTEQ, Reuters says. The inquiry has an initial deadline of 90 days, with a possible extension to 125; in question is whether or not the deal violates any monopoly concerns. The Commission observes that NAVTEQ is only one of two major producers of digital maps for GPS services, which could give Nokia an unfair advantage in its cellphone business.
Nokia is downplaying the investigation, writing in statement that it "does not in any way signal the ultimate outcome." The NAVTEQ deal is considered to be extremely important to the company though, as Nokia has planned to spend $8.1 billion on the acquisition, and it could ultimately save money by eliminating licensing costs.