Kroes gives green light for acquisition of Tele Atlas by Tomtom

Tomtom has received the green light from European Commissioner for Competition Affairs Neelie Kroes to take over Tele Atlas. No additional requirements are set by the regulator.

Kroes concludes after additional research that after the takeover of the digital mapmaker by Tomtom there is still sufficient room for competition, so reports the NOS. Customers could obtain the digital map material from Navteq, should Tomtom decide to keep the Tele Atlas data for itself. Kroes argues, however, that Tomtom would not earn enough money with the sale of navigation equipment alone and would therefore be wise to also give other companies access to the digital maps. Tomtom has already made commitments in this area by promising licensing deals.

The producer of navigation systems had hoped for a quicker judgment from the European Commission, but Kroes deemed an investigation into the takeover necessary. Now that the takeover can still be completed, Tomtom can start saving money now that less money has to be spent on the map material. Tomtom then wants to invest in expanding the coverage of the Tele Atlas maps.