European Commission (EC) officials have started an in-depth investigation to assess the proposed acquisition of NXP by Qualcomm under the EU Merger Regulation.

The Commission has concerns the transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry.

The Commission’s initial market investigation raised several issues relating in particular to semiconductors used in mobile devices, such as smartphones and in the automotive industry.

“We use our electronic devices every day – mobile phones or tablets,” said Commissioner, Margrethe Vestager, in charge of competition policy.

“As semiconductors are used in practically every electronic device, we are dependent on them in those devices. With this investigation, we want to ensure consumers will continue to benefit from secure and innovative products at competitive prices.” 

The transaction was notified to the Commission on 28 April this year. The Commission now has 90 working days until 17 October to take a decision.

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By GlobalData