As expected, the European Commission cleared Google’s $12.5 billion acquisition of handset maker Motorola Mobility following a short period of back and forth between the Internet giant and European regulators. A statement issued by the European Commission said the transaction was approved “mainly because it would not significantly modify the market situation in respect of operating systems and patents for these devices.”

The Justice Department should approve the transaction this week, if the Wall Street Journal is to be trusted. When it finally goes through (and that’s a when at this stage, not an if), Google will gain control of Motorola’s extensive patent portfolio and use it to deflect Android patent attacks by Apple, Oracle, and Microsoft. The Commission noted it would continue to keep a close eye on “the increasingly strategic use of patents.” As you know, Apple is pressuring European Union regulators to establish consistent royalty fees for patents deemed essential to wireless standards.

Google’s Vice President and Deputy General Counsel Don Harrison wrote on the official company blog that Google is now “just waiting for decisions from a few other jurisdictions before we can close this transaction.” He maintained the company line that the deal will “enhance competition and offer consumers faster innovation, greater choice and wonderful user experiences.”

Motorola reported an $80 million loss in the holiday quarter and shed 800 jobs. It is also embroiled in a nasty patent fight with Apple that saw the latter sue the former in the United States over Qualcomm patent license after Motorola won a brief injunction of 3G iPhone and iPad sales in Germany.

The search company’s woes with the EU are anything but over, however. Google is facing a multi-billion dollar fine in the EU over an alleged misuse of its market position. Moreover, European regulators are demanding that Google pause introduction of a new privacy policy that seeks to consolidate user information across services. Google made known its intentions to snap up Motorola last August, with CEO Larry Page claiming the deal will “supercharge” Android. Motorola insisted from the onset it will “remain a licensee of Android and Android will remain open,” and both firms reassured other Android backers that it will run Motorola Mobility as a separate business entity.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s