Department of Justice Clears the way for Google to Purchase Motorola Mobility- Mobile Competition Should Increase:
Google continues to expand its offerings digitally and elsewhere. The company recently announced the acquisition of Motorola Mobility but the proposed merger needed clearance from the Department of Justice. This week, Google got the all clear signal. The combination of Google, the largest search engine and Motorola, the maker of cell phone technology will likely advance mobile telecommunication capacity for each firm as well as the industry as a whole. Google also got clearance from the European Commission and will be able to push its mobile technology across the pond with no problems. The DOJ also closed investigations into acquisitions by Apple Inc., Microsoft Corp. and Research in Motion Ltd. (RIM) of certain Nortel Networks Corporation patents, and the acquisition by Apple of certain Novell Inc. patents.
Google merging with Motorola should actually increase competition because Motorola has been struggling in recent years as it failed to embrace smartphone technology and touchscreens. Google is getting closer to creating an Apple-esque product management style that is streamlined and controlled by the company. There is one big difference however, Android is available on other mobile phones which gives the operating system an advantage in terms of getting new users to adopt it. Google’s purchase of Motorola is good for the industry – the DOJ agrees and made this statement:
“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. In all of the transactions, the division conducted an in-depth analysis into the potential ability and incentives of the acquiring firms to use the patents they proposed acquiring to foreclose competitors. In particular, the division focused on standard essential patents (SEPs) that Motorola Mobility and Nortel had committed to license to industry participants through their participation in standard-setting organizations (SSOs). The division’s investigations focused on whether the acquiring firms could use these patents to raise rivals’ costs or foreclose competition.