EU Approves $2.3 billion Takeover of Infinera by Nokia

New Nokia's logo is displayed before GSMA's 2023 ahead of the Mobile World Congress (MWC) in Barcelona, Spain February 26, 2023. REUTERS/ Albert Gea/File Photo
New Nokia's logo is displayed before GSMA's 2023 ahead of the Mobile World Congress (MWC) in Barcelona, Spain February 26, 2023. REUTERS/ Albert Gea/File Photo
TT
20

EU Approves $2.3 billion Takeover of Infinera by Nokia

New Nokia's logo is displayed before GSMA's 2023 ahead of the Mobile World Congress (MWC) in Barcelona, Spain February 26, 2023. REUTERS/ Albert Gea/File Photo
New Nokia's logo is displayed before GSMA's 2023 ahead of the Mobile World Congress (MWC) in Barcelona, Spain February 26, 2023. REUTERS/ Albert Gea/File Photo

The EU Commission on Wednesday said it had unconditionally approved the $2.3 billion acquisition of US optical semiconductors and networking equipment maker Infinera by Nokia.

The commission said the takeover raised no concerns, as the companies' combined market share in the supply of optical transport equipment would be moderate and would still face credible competition.

Reuters already reported earlier this month that Nokia was set for the unconditional approval for the deal, which it announced in June last year.

The acquisition will make it the second-largest vendor in the optical networking market with a 20% share, behind Huawei, which is benefiting from the minimal presence of Western companies in China.

The acquisition will allow Nokia to sell more equipment to big tech companies such as Amazon, Alphabet and Microsoft, which are investing billions of dollars in building new data centres to service the artificial intelligence boom.



Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
TT
20

Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.