The Commission fears that the takeover of NXP "will lead to higher prices, less choice and less innovation in the semiconductor industry." With the purchase of NXP, Qualcomm will acquire a business in the production of automotive electronics and things with an Internet connection. The deal will reduce Qualcomm's revenue from the mobile sector from 61% to 48% (as predicted by the company). This may force the company to put pressure on competitors in the industry of the release of modems and solutions for base stations.
In automotive electronics, the transaction risks crowding out competition in the latest V2X (Vehicle-to-Everything) technologies. In addition, Qualcomm can extend its "vicious" licensing practice to intellectual property of NXP, and this will lead to an increase in deductions. Qualcomm expect to close the deal before the end of this year. If the investigation of the European Commission does not find violations of the antimonopoly legislation, the company will withstand the previously adopted absorption schedule of NXP Semiconductors.
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