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Google’s $12.5B Motorola deal gets European approval

Google’s $12.5B Motorola deal gets European approvalGoogle’s proposed acquisition of cell phone large Motorola won approval from the European Commission today, leaving the U.S. Justice Division because the final main hurdle for the $12.5 billion deal.

A significant motivation for the deal is Motorola’s massive patent portfolio. The European clearance comes lower than every week after Google promised publicly that it wouldn’t misuse Motorola’s patent portfolio to extract unreasonable licensing charges for patents deemed “standard-essential.”

“We’ve authorised the acquisition of Motorola Mobility by Google as a result of, upon cautious examination, this transaction doesn’t itself elevate competitors points,” stated EU Competitors Commissioner Joaquín Almunia in a press release. “After all, the Fee will proceed to maintain a detailed eye on the behaviour of all market gamers within the sector, significantly the more and more strategic use of patents.”

The Wall Street Journal reports {that a} U.S. Justice Division determination on the case might come as early as this week.

The problem of licensing for “standard-essential” patents has been within the highlight because of a case wherein Motorola is in search of as a lot as 2.25 % of gross sales from Microsoft Home windows, Xbox and different patents that use the H.264 and 802.11 video and WiFi requirements.

Google informed Bloomberg Information final week that it could license Motorola’s standard-essential patents on fair, reasonable and non-discriminatory (FRAND) terms.

Microsoft went additional in its personal assertion final week, saying it won’t solely make standard-essential patents obtainable on honest and cheap phrases, but in addition that it “won’t search an injunction or exclusion order in opposition to any agency on the idea of these important patents.”

Replace: The WSJ quotes Almunia chatting with reporters: “Immediately’s determination doesn’t imply the merger clearance blesses all actions by Motorola up to now or all future motion by Google with regard to using commonplace important patents.”

Microsoft normal counsel Brad Smith says in a press release: “We’re inspired by the European Fee’s expression of significant concern across the misuse of standard-essential patents and the results to competitors and to Web customers worldwide.  Google’s letter despatched final week to requirements our bodies solely intensified these issues, and we welcome the Fee’s scrutiny of Motorola’s previous and Google’s future conduct associated to standard-essential patents.”

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