The European Commission and US Department of Justice have cleared Google's USD 12.5 billion takeover of Motorola Mobility. Neither found the takeover would significantly affect competition in the mobile handset OS market or lead to restrictions on licensing key technology. While the EC did not impose any conditions on the takeover, it did say it would keep a close eye on the market. "We have approved the acquisition of Motorola Mobility by Google because, upon careful examination, this transaction does not itself raise competition issues," said Joaquin Almunia, the commissioner in charge of competition policy. "Of course, the Commission will continue to keep a close eye on the behaviour of all market players in the sector, particularly the increasingly strategic use of patents." The DoJ also cleared the takeover of Nortel's patent portfolio by a consortium of Microsoft, Apple, Ericsson, EMC, Sony and Research in Motion for USD 4.5 billion. The US regulator said it's investigation of both deals focused on whether the acquiring firms could use standards-essential patents (SEPs) to raise rivals' costs or foreclose competition. Google, Apple and Microsoft, among others, made commitments concerning their licensing policies for SEPs. The DoJ said Apple and Microsoft made clear commitments to license SEPs on fair, reasonable and non-discriminatory terms, as well as not to seek injunctions in disputes involving SEPs. Google's commitments were "more ambiguous" and do not provide the same direct confirmation of its SEP licensing policies, the DoJ said. The regulator said it too will keep an eye on the market, and in particular the use of SEPs in the smartphone and tablet markets.
