Google was approved to acquire the cellphone maker Motorola Mobility late today by the U.S. Department of Justice. This was done without any formal conditions and will most definitely pave the way for the search giant to compete one-on-one with its archrival, Apple.
The deal itself is worth $12.5 billion, and looks to have cleared most of the big hurdles, however it still needs some more approvals. This deal would ultimately bring Google 19,000 new employees as it builds it’s empire.
On another note, Google’s Android operating system is becoming increasingly popular as it branches to new smartphones every year. Google shares also rose $6.29 Today (2/13/12) to close at $612.20.
Europe, on the other hand, warned Google to play fairly in the markets for smartphones and tablets as the approval passed.
According to James Kanter and David Streiteel of the NY Times, “The clearance in Europe will come as a relief for Google, which is still trying to fend off a separate investigation by the commission into whether the company has abused a dominant position in online search and advertising.”
Nevertheless, phone makers are consistently pursuing legal battles worldwide over the fairness of fees that the companies press on one another fur using patented technology.
In one of the most recent cases, Apple filed a lawsuit in California last week claiming that the Galaxy Nexus, a Samsung smartphone, infringes on patents underlying the features customers expect from Apple products, like how the phone is unlocked and how it searches for information by voice command.
Furthermore, Google wrote to the standard organizations around the world requesting to license Motorola patents on reasonable terms if the deal was to succeed. Google added that they would promise to keep a cap on the fees they charges for licensing its technology at a top rate of 2.25 percent of the net selling price for each phone. Google also wanted to outline the terms under which the company would be able to sue companies for patent infringement.
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