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EU & US Approves Google-Motorola Deal


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European regulators have given Google the green light to take over Motorola, but concerns linger over how neutral Google will be in licensing its newly acquired.

European regulators have given Google the green light to take over Motorola Mobility.

The US$12.5 billion deal faced strong opposition from open source and consumer rights advocates, but the European Commission announced on Monday that the acquisition could go ahead, without conditions.

By buying Motorola Mobility, Google will gain control of around 17,000 smartphone patents, but the Internet giant has pledged to license them under fair, reasonable and non-discriminatory (FRAND) terms. However, in a letter to 15 standards bodies, Google also listed the exceptions for when it would abandon this promise and would continue to pursue injunctions.

The approval news comes as mobile phone leaders Apple, Microsoft, Google and Samsung struggle for dominance with countless court cases currently ongoing over alleged patent violations.

Google's Android smartphone operating system dominates the mobile market with a 38 percent share compared to Apple iPhone's 27 percent.

"If Google is allowed to dominate the mobile market it will result in higher prices for consumers and stifle innovation," warned Consumer Watchdog's John Simpson.

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Google's Motorola buy gets clearance from US, Europe

European Union officials gave Google regulatory approval for its acquisition of Motorola Mobility today. The deal is expected to gain approval from the US Justice Department later this week.

"We have approved the acquisition... because upon careful examination, this transaction does not itself raise competition issues," EU Competition Commissioner Joaquin Almunia said in a statement, according to Reuters. Google's $12.5 billion purchase of Motorola is driven largely by the device maker's portfolio of 17,000 patents, which Google hopes to use to protect Android from patent lawsuits, and perhaps launch a few lawsuits of its own.

The possibility that Google might abuse this patent portfolio was not worrying enough to lead the EU to block the merger. But Almunia said European authorities reserve the right to monitor Google's handling of the patents, and they reserve the right to reopen their inquiries based on future actions. "This merger decision should not and will not mean that we are not concerned by the possibility that, once Google is the owner of this portfolio, Google can abuse these patents, linking some patents with its Android devices. This is our worry," Reuters quotes him as telling reporters.

When Google announced the acquisition, it expected to close the deal by the end of 2011 or early 2012. It is still on track to meet that goal, if US approval comes this week as expected.

UPDATE: Google has now received the all-clear from the US Department of Justice's antitrust division, which announced this afternoon that it has closed its investigation. The Justice Department also approved the $4.5 billion sale of Nortel patents to Apple, Microsoft, and RIM, and the sale of Novell patents to Apple.

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