In a sensational move in their biggest acquisition, Google Inc. got approval from the Chinese regulators for the purchase of Motorola Mobility.
After the clearance from the US and European regulators, the internet giant was waiting for the final nod from the Chinese counterparts to approve their £7.9bn purchase of US phone maker Motorola Mobility.
The Chinese officials have asked the internet company to keep it’s open source mobile platform, Android, free for other device manufacturers for five years. Acquiring the US phone maker has paved the path for the internet giant to step into the massive phone and tablet market.
The acquisition also means Google will have access to Motorola Mobility Inc’s 17,000 plus valuable patents, which will have a big role to play while defending the company and Android phone makers in patent disputes worldwide.
A company official said, “Our stand since we agreed to acquire Motorola has not changed and we look forward to closing the deal.” The entry into the competitive tablet and phone market is just an advantage while the major motive will be to use the patents “strategically”.
The European regulators took equal amount of time to approve the bid, with their main concern being probability of Motorola favoured more over HTC and Samsung. Both these companies use Google’s Android system in their phones.
Analysts believe this strategic move from Google will give the company a strong foothold in the patent market and save millions spent in patent dispute settlements in the future.