Investigators Probe Nuance
Nuance Communications is under investigation for possible antitrust activity, according to
Bloomberg.com. Investigators are trying to determine whether the company's acquisition of Phillips speech recognition (SR) software last year reduced competition and opened an opportunity to raise prices.
According to the report, a spokesperson for Nuance said the company did nothing wrong in the transaction. Phillips, a Vienna-based company, had limited business in the U.S.; Nuance has a large U.S. client base and purchased Phillips SR to expand its market abroad, the spokesperson said. In its quarterly report, Nuance cited Medquist Inc. and Spheris Inc. as SR competitors.
If antitrust activity is confirmed, Nuance may be required to sell the Phillips branch or license the software to another company, the report said.