The European Commission has opened an investigation into the proposed $47 billion acquisition of NXP Semiconductors by semiconductor company Qualcomm. The in-depth investigation was sparked by the Commission’s concerns that the transaction could lead to higher prices, less choice and reduced innovation in the semiconductor industry. According to a release from the Commission, the merged entity would have the “ability and incentive” to modify NXP’s current IP licensing practices, in particular in relation to near-field communication (NFC) chips technology. The Commission is set to investigate whether such conduct, which includes bundling the acquired NFC IP to Qualcomm’s patent portfolio, could lead to anti-competitive effects, such as increased royalties for customers and the exclusion of competitors.

Source: WIPR