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  • Author Author: Joshua_Evans
  • Date Created: 21 Feb 2012 8:13 AM Date Created
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Google moves closer to acquiring Motorola Mobile

Joshua_Evans
Joshua_Evans
21 Feb 2012

Google's ambitious bid to acquire Motorola Mobile, the international phone maker, has been rubberstamped by authorities in the US. The announcement was made a matter of hours after Google received clearance from authorities in Europe.

 

Indeed, the European Commission determined that the proposed buyout would not raise competition issues in the market for operating systems for handheld devices. US regulators, meanwhile, agreed with this verdict, but pledged to continue to pay attention to Google and its use of patents.

 

Before the deal is concluded, however, regulators in China, Taiwan and Israel must give their backing to the proposed takeover, as these countries are linked to the manufacturing process.

 

Motorola split into two divisions last year, and Google is keen to acquire the business that specialises in making mobile phones and tablets. Through the deal, Google will immediately gain access to more than 17,000 of Motorola Mobility's patents, which will help to ring fence the company against lawsuits from rival firms.

 

In addition to the patents, Google is keen to gain ownership of Motorola's wireless accessories, set-top boxes and video distribution systems, as well as the firm's wireline broadband infrastructure products.

 

But according to Joaquin Almunia, the EU's Competition Commissioner, the deal would not significantly reduce competition in what is currently a very fierce marketplace. In a statement, he added: "The commission will continue to keep a close eye on the behaviour of all market players in the sector, particularly the increasingly strategic use of patents."

 

The support of the EU for the proposed takeover is an important milestone for Google, according to the firm's Vice-President Don Harrison, who explained that Motorola remains central to the firm's long-term ambitions.

 

"As we outlined in August, the combination of Google and Motorola Mobility will help supercharge Android," he commented. "It will also enhance competition and offer consumers faster innovation, greater choice and wonderful user experiences."

 

The EU commission explained that it backed the buyout after concluding that Google is unlikely to restrict the use of Android solely to Motorola, observing that the mobile phone firm is a "minor player in the European Economic Area".

 

Google, of course, is still embroiled in various patent disputes in court rooms around the world and this takeover situation is key to a number of those ongoing battles.

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