Antitrust watchdog concerned that $47 billion deal could harm competition in V2X market.

The European Commission late last week opened an in-depth investigation into Qualcomm’s $47 billion (€42.96 billion) acquisition of NXP.

The antitrust watchdog is concerned that the tie-up could limit competition in the baseband and near-field communication (NFC) chipset markets, and the budding vehicle-to-everything (V2X) market.

The Commission is also concerned that Qualcomm would have the means and incentive to modify NXP’s patent-licensing practices, potentially leading to higher royalties, and excluding rivals.

Qualcomm agreed in October 2016 to buy NXP, which became the world’s biggest supplier of semiconductors to the automotive industry after it bought Freescale for $11.8 billion.

As well as complementing its mobile processor and modem businesses, the deal also gives Qualcomm a strong position in the markets for security, network processing and RF power, and IoT semiconductors.

"As semiconductors are used in practically every electronic device, we are dependent on them in those devices. With this investigation, we want to ensure that consumers will continue to benefit from secure and innovative products at competitive prices," said competition commissioner Margrethe Vestager, in a statement on Friday.

The Commission said it will conclude its investigation and issue a decision on the deal by 17 October. Details about the case can be found here.