The EC objects to TomTom’s €2.9 billion plans to purchase map supplier Tele Atlas. The statement gives TomTom a date (May 5th) by which it will have to come up with remedies to EC concerns.
Once a statement of objections is issued, this can slow the deal process as it creates a formal procedure that must be followed to resolve problems with the deal.
TomTom is anxious to go past hardware where double-digit profit margins could decline. TeleAtlas would also strength its arsenal against competitors.
Tele Atlas supplies online mapping to Google Maps, Nokia and others.
The companies together seek to gather info on traffic flows to create new features such as daily map updates and predicting traffic jams.