Business & Tech

Google Purchase of Motorola Ok'd by U.S., EU

The deal cements the Internet company's position as a hardware manufacturer and owner of a lot of patents—17,000 more.

just got a lot bigger.

Today both the United States and European Commission gave the Mountain View-based tech giant a bit of good news—that its proposed purchased of Motorola Mobility does not raise antitrust issues. The news essentially green lights Google's completion of the deal worth $12.5 million and according to the Department of Justice, adds a portfolio of smarphones, computer tablets, and 17,000 issued patents and 6,800 applications.

"We’re happy that today the European Commission approved our proposed acquisition of Motorola Mobility, which we announced in August," said Don Harrison, vice president and deputy general counsel. "This is an important milestone in the approval process and it moves us closer to closing the deal. We are now just waiting for decisions from a few other jurisdictions before we can close this transaction."

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The developments also come a day after Google TV announces improvements to the navigation of YouTube on the Android platform.

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

In a statement released by DOJ, their antitrust division "determined that each acquisition is unlikely to substantially lessen competition." In addition to Google's purchase, DOJ looked at and approved acquisitions by Apple, Microsoft and Research in Motion.

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"The division concluded that the specific transactions at issue are not likely to significantly change existing market dynamics."

The acquisitions, DOJ found, maintained a competitive marketplace that by the end of 2011 had Google’s Android with nearly 46 percent of the U.S. smartphone subscribers, Apple’s iOS had about 30 percent of subscribers, and RIM and Microsoft with 15 percent and 6 percent.

However, DOJ raised some concerns and expressed that they would remain vigilant that Google and Apple do not thwart the competition. Other countries like China, Israel and Taiwan have not yet approved the deal.


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