Google-Motorola Deal Finally Gets US Approval

After getting a final approval from European regulators, Google has now received a green signal from US regulators as well to finalize its $12.5 billion Motorola Mobility’ acquisition. The United States Department of Justice (DOJ) has finally approved the search giant’s supposed acquisition of Motorola Mobility.

These are the two major hurdles restricting Google to finalize the acquisition. Now, getting approval from the regulators of both the countries, Google is now all set to finalize its purchase. Acquiring Motorola will give the search giant the ability to manufacture its own line of smartphones, appropriate for its most popular Android platform. Currently, Motorola is known to be the one of the biggest manufacturers of Android phones. It also owns a good number of patents in the mobile market.

 Google Motorola Deal Finally Gets US Approval

While announcing the European approval, the Vice President and Deputy Council of Google, Don Harrison stated in a blog post, “the combination of Google and Motorola Mobility will help supercharge Android. It will also enhance competition and offer consumers faster innovation, greater choice and wonderful user experiences.”

The DOJ’s Antitrust Division through a statement announced its approval. The statement is not just limited to announce the approval of Google-Motorola deal, but also announced approval for Apple’s acquisition of certain Novell patents along with Apple, Microsoft and RIM’s acquisitions of certain Nortel Networks patents.

DOJ statement is read as, “After a thorough review of the proposed transactions, the Antitrust Division has determined that each acquisition is unlikely to substantially lessen competition and has closed these three investigations.” DOJ later added that “the division’s investigations focused on whether the acquiring firms could use these patents to raise rivals’ costs or foreclose competition.”

Interestingly, the DOJ’s antitrust regulators didn’t impose any restrictions on the acquisition, just like EU regulators. However, the Europe’s competition commissioner Joaquin Almunia made this clear that approval does not mean that the merger clearance blesses all actions by Motorola in the past or all future action by Google.

This would be the search giant’s first extension into the technology hardware business. This acquisition will certainly help Google to further improve its skills in mobile technology.

Filed Under: Cellphones & TelephonesManagement SystemsNews

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