Thursday, February 16, 2012

Google Gets Europe's "OK" to Buy Motorola.

Google has officially been cleared by European regulators to purchase Motorola Mobility Holdings. This venture cost them a whopping $12.5 billion dollars making it the largest investment of hardware Google has ever had. Within the article, Mark Russell writes that Google will still be monitored for anti-trust.

Google stated that one of the most appealing things about their take over of Motorola is their various patents and patent applications. 17,000 patents and 7,500 patent applications to be exact. The European regulators fear that as time goes on, Google will abuse these patents and license the technology at unfair prices.

Regulators fear that Google could infuse these patents with their Android patents to create an unfair market for these devices. It could potentially enable emerging companies to create and innovate new products due to the violation of these patents.

But, although Google has gotten by the regulators in Europe, China, Taiwan and Israel have not yet approved the deal. Without knowing what these other countries are going to decide, what do you think would be the best decision? Also, is Google becoming too much of a powerhouse? How can they be regulated more thoroughly?
Posted by at

1 comment:

  1. EgageFebruary 16, 2012 at 3:16 PM

    I think the best decision for Google to do would be to buy out Motorola. The market in Europe is a perfect fit for Google to potential monopolize the mobile phone market. Apple is not a huge player in Europe, although they are constantly gaining market share throughout the globe. If Google could use the patents that Motorola already owns and manipulate them to make a new breed of super phone they would be very successfull. Also, the iphone has become such a success in America and innovations need to occur or else Apple will totally control the mobile phone market.

    I understand your concern with the lack of approval in Asian markets. But, Asian markets are controlled much more by government regulations, I think the money is made in the free markets of Europe and America. Although the Asian market is the largest, the parameters to enter their markets legally would be far too costly and not worthwhile.

    I think competition between the big mobile phone players is a good thing for the consumer. Phone prices are extremely high at this moment in time, and competition may decrease the demand, which in turn could decrease some prices. The question I end this reply with is, is competition within a market always good for the consumer?

    ReplyDelete

Subscribe to: Post Comments (Atom)