The European Commission is initiating a review of Qualcomm's acquisition of Autotalks under Article 22 of the 2004 Merger Regulation
News CompetitionEnglishSanctions & Fines
Date: 22nd Aug, 2023Source: French Competition AuthorityCountry: France
Original Source
Brief
Summary:
The European Commission has launched an investigation into Qualcomm's acquisition of Autotalks, a move that was referred by the Autoritu00e9 and six other European competition authorities. The two companies are leaders in long- and short-range communication technologies, which are crucial for the development of Cooperative Intelligent Transport Systems (C-ITS) and Vehicle-to-Everything (V2X) technologies. These technologies enable vehicles to exchange information with each other and their environment, enhancing road safety, efficiency, and driving experience. The acquisition is significant as it may impact the strategic challenge for Europe and France in the booming C-ITS sector, where many private and public sector companies are involved in the deployment of C-ITS across the country.
Qualcomm and Autotalks are world leaders in long- and short-range communication technologies, which are increasingly used in the automotive and road infrastructure industries. These technologies, which are based on on-board sensors, can be grouped under the term “Cooperative Intelligent Transport System” (C-ITS), or V2X for “vehicle-to-everything”. In particular, they enable vehicles to exchange information with each other and with their environment, in order to improve the driving experience, road safety, the safety of operating agents working on the roads and the overall efficiency of road traffic.
This booming sector represents a strategic challenge for Europe and France. In France, the deployment of C-ITS across the country has been underway for several years, and many private and public sector companies are involved in this strategy, including road managers, vehicle manufacturers, equipment suppliers and telecoms operators.
Press release of 18 August 2023
The European Commission is initiating a review of Qualcomm's acquisition of Autotalks under Article 22 of the 2004 Merger Regulation.
See the press release
Here is a long in-depth summary of the provided document:
Summary:
On August 18, 2023, the European Commission, responding to a referral request from the Autoritu00e9 and six other European competition authorities, has initiated proceedings to examine Qualcomm’s takeover of Autotalks. The review is based on Article 22 of the European Merger Regulation, which allows the Commission to investigate mergers that may have a significant impact on competition in the European Union.
Qualcomm and Autotalks are leading companies in the field of long- and short-range communication technologies, which are crucial components of the Cooperative Intelligent Transport System (C-ITS) also known as Vehicle-to-everything (V2X) technology. C-ITS enables vehicles to exchange information with each other and their environment, thereby improving driving experiences, road safety, and overall efficiency of road traffic.
The automotive and road infrastructure industries are key sectors where these technologies are being increasingly used. The European Commission has acknowledged that the deployment of C-ITS is a strategic challenge for Europe and France, with many private and public sector companies involved in the strategy, including road managers, vehicle manufacturers, equipment suppliers, and telecoms operators.
The Commission’s decision to initiate proceedings comes as a response to concerns raised about the potential impact of the acquisition on competition in the C-ITS market. The review is expected to assess whether the takeover will lead to a significant decrease in competition, resulting in reduced innovation, higher prices, or inferior services for consumers.
By initiating proceedings, the Commission aims to provide guidance and clarity on the competitive implications of the acquisition, ensuring that the deal does not compromise the level playing field and fair competition in the C-ITS market. The outcome of the review will be crucial in determining the future of the acquisition and its impact on the European automotive and road infrastructure industries.
Source: European Commission, Authoritu00e9, and other participating European competition authorities
Please note that this summary is based on the information provided in the document and may not include all details or specific data.
French Competition Authority
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