BMW, Daimler and Audi can aquire Nokia's HERE mapping service

06.10.2015

In the first phase of merger control the Bundeskartellamt has cleared the acquisition of the HERE mapping service, which until now has belonged to the Finnish Nokia Corporation, by a consortium of the German car manufacturers BMW, Daimler and Audi. High definition digital maps are considered an essential element for connected and autonomous driving in the future.

HERE provides digital mapping databases which in combination with a navigation software have up to now formed the basis for classical navigation applications. HERE largely supplies companies in the automotive and automotive supply industry with the necessary maps for navigation. In addition to smartphone and tablet manufacturers its customers also include fleet management companies. From the perspective of the automotive industry the digital maps, in combination with the sensors fitted into the vehicles which will allow for map updating in realtime, are an essential prerequisite for autonomous driving.

Apart from Google, HERE and the Dutch company TomTom are the only companies which produce digital navigable databases with EEA-wide coverage. To date Google has not been a potential supplier of digital mapping material to car manufacturers because of its own strategy on developing autonomous vehicles. It is also not forseeable what plans Apple is pursuing in this area.

Andreas Mundt, President of the Bundeskartellamt: "Our examination focused on the question of whether the merger could lead to an exclusion of other car manufacturers from the supply of digital maps or whether HERE's competitor TomTom could be denied access to car manufacturers and automotive suppliers in future. We were able to rule out these kind of foreclosure effects because automobile customers can still buy digital maps from TomTom and they are likely to have an interest in keeping this alternative open. TomTom, which up to now has had only few business relations with the manufacturers acquiring HERE, will also not be hindered from selling its products to other car manufacturers in future."

With the installation of the respective sensors in their vehicles the car manufacturers could therefore also develop autonomous driving systems in cooperation with TomTom.

Clearance was granted under the proviso that the case lies within the competence of the German national competition authority. Given the amount of turnover of the companies involved, the European Commission would be the competent authority in the case of the joint control of HERE. An examination of the controlling relationship by the European Commission could not be concluded within the one month deadline for examination under German merger control.

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