China stalls investigation into Google, Motorola: Merger on hold

China stalls investigation into Google, Motorola: Merger on hold

Summary: With one hurdle left, after the DoJ and European authorities accepted the deal, China is still causing headaches for Google in its proposed acquisition of Motorola Mobility.

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Despite passing the U.S. Department of Justice and the European antitrust board, Google still has to jump through the hoops set out by the Chinese authorities before it can acquire Motorola Mobility for $12.5 billion.

The deal must pass in China for the acquisition to go ahead, or face pulling out of the country altogether. China is the last stop before the deal can formally go ahead.

But further delays are expected after the Chinese antitrust regulators added another round of investigations to the deal.

Tensions between Google and China remain fraught, a few years after Google famously pulled out of the country after it was hacked by the Chinese government --- an accusation it denies.

The second phase of the review could cause headaches to Google or Motorola. European authorities paused the investigation into the acquisition after it requested further details. But no further details were given as to why Chinese authorities entered the second phase of its investigation.

"Motorola Mobility and Google continue to work closely with MOFCOM [the Chinese regulator] to conclude its investigation and expect the transaction to close during the first half of 2012," Motorola said in its amended U.S. Securities and Exchange Commission filing.

But the two companies warned that: "Motorola Mobility and Google can provide no assurances as to whether or when the transaction will receive clearance by MOFCOM."

Despite concerns over patents, Google and Motorola must license Motorola patents on 'fair, reasonable and non-discriminatory' (FRAND) terms, and pledged to do so.

Google is set to receive over 17,000 patents to its portfolio in the acquisition.

Related:

Topics: Mobility, Banking, Google, China

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8 comments
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  • MOFCOM should stop the grandstanding

    and approve the deal for the sake of the Chinese economy.
    The Linux Geek
  • The DOJ should revoke their approval until the moto FRAND thing gets

    resolved. Moto is violating their FRAND agreements in the US. The penalty should be the patents should be made public domain.
    Johnny Vegas
    • LOL!

      FRAND is a buzz word invented by M$ and apple $hills.
      The Linux Geek
      • And FRAUD

        is a word used to describe you.
        William Farrel
  • Apple and the Chinese government are in this together

    It's obvious that China rely on Apple in their country, and I think Apple are paying off the Chinese government to 'stall' or block this deal at any cost. The last thing Apple want is for Google to get those patents, or build up any options to their products (i.e iPhone). Apple is as corrupt as the Chinese government on this one.
    Michaelpd
    • Probably

      Since Google doesn't manufacture much compared to Apple and their gadgets, I wouldn't be surprised if China is biased towards Apple.
      Gisabun
  • Damn....

    I guess my cheque from Google is being put on hold then.....
    Gisabun
  • someone needs to require Apple to follow FRAND

    biggest bunch of BS is that Apple refuses to license anything, then sues anyone who blinks in their marketspace. This is the one reason I won't buy or use a single product owned by that company.

    patents need to be like medication, you get it exclusively for a while, then you have to give it up to everyone else.
    aiellenon