UK investigates Microsoft's Nuance deal

UK seeks views on Microsoft, Nuance deal

14 DEC 2021
Microsoft

The UK Competition and Markets Authority (CMA) launched an investigation into a proposed $19.7 billion acquisition of Nuance Communications by Microsoft, the latest in a series of moves by the regulator to put the brakes on technology mergers.

The CMA invited comments on the proposed transaction, noting in a statement these proceed the opening of an initial phase probe. It is concerned over the potential for the deal to result in a substantial reduction in competition.

Comments can be submitted until 10 January 2022, after which the CMA will take a decision on a fuller probe.

Microsoft wants to buy Nuance Communications for its speech recognition software, which uses AI and is widely deployed in the healthcare sector, a market the software company is keen to penetrate further with its cloud services.

Authorities in the US cleared the takeover, with a European Commission review ongoing.

When Microsoft announced the deal in April, it aimed to close by the year-end.

The CMA last month ordered Meta Platforms to undo an acquisition of Giphy, while a broader UK government review of an Nvidia move for chip designer Arm is ongoing.

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Martha DeGrasse

Freelance tech journalist Martha DeGrasse (@mardegrasse) is delighted to be contributing to Mobile World Live. Martha has written for a number of telecom and wireless publications, and was a writer, editor and video producer at RCR Wireless News for almost...

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