February 14, 2012
US And EU Okay Google’s Motorola Purchase
Google has cleared even more hurdles as it navigates the regulatory reviews around the world for its purchase of Motorola Mobility. Google was approved on Monday by European Union antitrust regulators and the United States Department of Justice to purchase the struggling company.
The Europeans reluctantly gave Google the nod. The New York Times reports that Joaquin Almunia, the European Union competition commissioner blessed the deal because of Google´s model of sharing the operating system with competitors. Giving the Android OS the widest possible user base, making it less likely the company would make Motorola the sole user of the mobile OS.
The European Union Antitrust commission told ABC News, “Android helps to drive the spread of Google´s other services. Given that Google´s core business model is to push its online and mobile services and software to the widest possible audience, it is unlikely that Google would restrict the use of Android solely to Motorola.”
The deal is worth $12.5 billion and is more than the combined amount Google has paid for all of its other 185 acquisitions since they went public in 2004, according to ABC News.
This purchase will bring Google more than 17,000 of Motorola Mobility´s patents and 7,500 patent applications.
But Google still has to wait for approval from other regions of the world until they can go ahead with their purchase plans. Regulators in China have until March 20, says Reuters, to approve the deal or start a third phase of review. Also Israel and Taiwan need to approve of the purchase before it moves on.
But the purchase is about more than just mobile phones. Motorola Mobility also makes set-top boxes for cable TV. This will help bring Google and its future services into living rooms. Google is already testing a device that connects home electronic components, according to a filing with the Federal Communications Commission.
United States regulators also approved the purchase of failed Canadian company Nortel´s patents by a group of companies led by Apple. And also Apple´s purchase of patents formerly owned by Novell Inc.
On the Net:
- Motorola Mobility
- European Union Antitrust commission
- Department of Justice
- Federal Communications Commission