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DOJ Approves Google's Acquisition of Motorola Mobility

 & Chloe Albanesius Executive Editor, News

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The Department of Justice on Tuesday approved the pending merger of Google and Motorola Mobility, finding it unlikely that the two companies will use their patent holdings to give themselves a competitive advantage.

Similarly, the agency also approved the purchase of Nortel patents by Apple, Microsoft, and Research in Motion.

"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," the DOJ said in a statement.

Of particular interest, the DOJ said, was whether the deals would allow the tech giants to go after rivals for patent infringement. Instead, the companies have agreed to license their patents on fair, reasonable and non-discriminatory (FRAND) terms.

The DOJ said Apple and Microsoft made "clear commitments" to license patents on a FRAND basis, though "Google's commitments were more ambiguous and do not provide the same direct confirmation" of its licensing plans.

"The evidence shows that Motorola Mobility has had a long and aggressive history of seeking to capitalize on its intellectual property and has been engaged in extended disputes with Apple, Microsoft and others," the DOJ found. "As Google's acquisition of Motorola Mobility is unlikely to materially alter that policy, the division concluded that transferring ownership of the patents would not substantially alter current market dynamics."

In fact, Google purchased Motorola Mobility in part to bolster its patent portfolio after it lost the chance to purchase the Nortel patents. Prior to the Motorola acquisition, Google accused Apple, Microsoft, and other tech giants of trying to "strangle" Android with its coordinated patent purchases and pledged to "intensely" defend its mobile OS through patent purchases of its own.

With its $12.5 billion purchase of Motorola Mobility in late August, Google said it would "supercharge" Android.

The DOJ said it "will not hesitate to take appropriate enforcement action" against companies that abuse their rights.

The DOJ approval, meanwhile, comes one day after the European Commission approved the merger of Google and Motorola Mobility, finding that the deal would not significantly alter the market as it relates to mobile operating systems and patents.

For more, see Google Acquires Motorola Mobility: What You Need to Know.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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