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European regulator approves Google's purchase of Motorola

By Brendan Sasso - 02/13/12 03:31 PM ET

The European Union's antitrust regulator approved Google's $12.5 billion purchase of Motorola Mobility on Monday.

The U.S. Justice Department is also reportedly close to approving the deal.

"We have approved the acquisition of Motorola Mobility by Google because, upon careful examination, this transaction does not itself raise competition issues," said Joaquín Almunia, the European Commission's vice president of competition policy. "Of course, the Commission will continue to keep a close eye on the behavior of all market players in the sector, particularly the increasingly strategic use of patents."

The commission concluded that it is unlikely Google would restrict its Android operating system to only Motorola phones, noting that "Google's core business model is to push its online and mobile services and software to the widest possible audience."

The acquisition will give Google a foothold in the mobile phone industry and could boost its Android mobile operating system.

Google would also gain access to Motorola’s trove of patents, which it can use to fend off lawsuits from Apple.

Motorola split into two companies, Motorola Mobility and Motorola Solutions, early last year. Motorola Solutions, which provides data and communications tools to businesses and government agencies, will remain an independent company.


Source:
http://thehill.com/blogs/hillicon-valley/technology/210325-european-regulator-approves-googles-purchase-of-motorola
Phillip J. Bond’s ‘Tech Execs’ appears here on The Hill's Hillicon Valley Blog occasionally.

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