updated 12:45 pm EDT, Wed July 2, 2008
Nokia/NAVTEQ deal OK'd
The European Commission has approved an acquisition of map maker NAVTEQ, Nokia has announced. With this validation in hand, the company says it has met all regulatory concerns, and plans to complete the buyout within a matter of five days. "NAVTEQ will play a key role in our Internet services strategy," reads a statement from Nokia CEO Olli-Pekka Kallasvuo. The acquisition will also likely save the company money on licensing, as it has previously had to pay companies like NAVTEQ for each use of a map on a phone.
The deal raised the ire of the Commission in March, as NAVTEQ is merely one of two major map makers for GPS devices, and its purchase was believed to pose the risk of a monopoly. This situation may in fact have been exacerbated by TomTom's purchase of Tele Atlas, leaving no significant independents in the GPS map industry. It is expected however that both NAVTEQ and Tele Atlas will continue to license maps to other electronics companies.