Regulators OK Google’s Motorola Bid

DOJ Vows to Monitor Internet Giant’s Use of Patents

By Todd Spangler -- Multichannel News, 2/20/2012 12:01:00 AM

Motorola Mobility is a few steps closer to becoming a division of the world’s largest Internet company.

The Department of Justice’s Antitrust Division last week gave the go-ahead for Google’s proposed acquisition of the mobile devices and cable technology supplier, while noting that “how Google may exercise its patents in the future remains a significant concern.” The European Commission also approved the Google-Motorola deal, though it similarly said it would keep “a close eye” on the sector.

In August 2011, Google announced its surprise bid to acquire Motorola Mobility, a key supplier of set-tops and other products to the cable industry, for $12.5 billion in cash. The deal was driven primarily by Google’s desire to obtain the latter’s portfolio of more than 17,000 patents to protect its Android mobile operating system from litigation by rivals like Apple and Microsoft.

Concurrent with its approval of Google-7 Motorola, the DOJ antitrust division cleared the acquisition by Apple, Microsoft and Research in Motion of Nortel Networks patents — in a $4.5 billion transaction — as well as Apple’s acquisition of certain Novell patents.

The Justice Department said Google’s statements regarding its position on licensing key patents on fair, reasonable and nondiscriminatory (FRAND) terms “were more ambiguous” than those from Apple and Microsoft.

The agency’s antitrust division concluded that Google’s acquisition of the patents “did not substantially lessen competition,” but said it will vigilantly watch the company’s patent-related activities: “The division’s continued monitoring of how competitors are exercising their patent rights will ensure that competition and innovation are unfettered in this important industry.”

The acquisition of Motorola Mobility will “help supercharge Android,” Google vice president and deputy general counsel Don Harrison wrote in a blog post. “It will also enhance competition and offer consumers faster innovation, greater choice and wonderful user experiences.”

GOOGLE-MOTOROLA: DEAL MILESTONES

Aug. 15, 2011: Google announces agreement to acquire Motorola Mobility for $40 a share.

Oct. 27: Motorola discloses plans to lay off 800 employees in fourth quarter.

Nov. 17: Motorola shareholders approve merger

Jan. 26, 2012: Deal receives clearance in Turkey, Russia.

Feb. 13: DOJ and European Commission clear transaction.