The US government has conducted a national security review of the proposed $21 billion joint venture agreement between Nokia and Siemens, and forced the telecom equipment makers to sign a

The US government has conducted a national security review of the proposed $21 billion joint venture agreement between Nokia and Siemens, and forced the telecom equipment makers to sign a “mitigation agreement” that imposes restrictions on the new company. The Committee on Foreign Investment in the US has reportedly imposed security requirements on the venture including those dictating whether foreigners can work on US equipment and software.

This mitigation agreement could set a precedent in the industry.

From now on, any deal involving Nortel Networks, which does sensitive work for the US government, could in particular face lengthy investigation.