The European Commission has approved the creation of a joint venture between EMP, the wireless platform business of Ericsson, and ST-NXP, the wireless semiconductors business of STMicroelectronics. The Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Ericsson is active in telecommunication products, ranging from networks and multimedia solutions to professional services and other communication products such as mobile phones. It is the ultimate parent company of Ericsson Mobile Platforms (EMP), a business unit which operates as a designer of wireless platforms. Wireless platforms combine the hardware components and the key software which allow a wireless handset to operate.

STMicroelectronics is active in the supply of semiconductors, ranging from single components to complex integrated systems and complete electronic platform solutions.

The joint venture would be active worldwide in the supply of wireless platforms for mobile handsets as well as the supply of semiconductors for mobile telecommunications. The joint venture would integrate all of EMP's activities, which consist of designing wireless platforms for the cutting-edge 3G mobile handsets (HSPA technology), with the activities of ST-NXP which focus on less technologically-advanced 2G handsets and, to a limited extent, the mature 3G (WCDMA release 99) handsets. ST-NXP is already the preferred supplier of core semiconductors sold with EMP's HSPA platforms.

The joint venture would lead to the creation of an integrated platform supplier, by combining the semiconductor activities of ST-NXP with the platform design activities of EMP. However, the Commission’s investigation did not reveal any competition concerns in this respect.