EC clears TomTom’s acquisition of Tele Atlas

EC clears TomTom’s acquisition of Tele Atlas

The US authorities cleared the acquisition in October 2007.

After an in-depth examination that began in November 2007, the Commission concluded that the merger of the two Netherlands-based companies would not significantly impede effective competition in the European Economic Area (EEA), in particular in light of the duopoly market for navigable digital maps (Tele Atlas and Navteq), and TomTom's leadership in the PND market.

After focusing on the ability and incentives of the merged company to increase the costs of other PND manufacturers for navigable digital maps or to limit their access to these maps, the Commission concluded that the merged company would be unlikely to pursue these strategies because its ability to restrict access to digital maps for other PND manufacturers would be limited by the presence of its upstream competitor, Navteq.

Furthermore, the merged company would have no incentive to restrict access to digital maps because the additional sales of PNDs would not compensate for sales of digital maps lost by Tele Atlas.

The EC is currently investigating a similar deal involving Nokia's planned acquisition of Navteq.


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