Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

EU asks for more information on Google-Motorola deal

The query will halt the approval process until the European Commission has all the documentation it needs

The European Commission has asked Google for more information about its planned $12.5 billion deal to buy Android smartphone maker Motorola Mobility, and has suspended its approval process until it has all the documentation it needs, a spokeswoman for the Commission said on Tuesday.

The query means the Jan. 10 deadline for the first phase of the approval process won't be met. A new date will be announced when Google has submitted the documentation, the Commission said.

The Commission needs certain documents that are essential to its evaluation of the transaction, the spokeswoman said via email, without elaborating on what those documents need to detail.

Google confirmed that the Commission has asked for more information, saying that it is routine measure. The company is "confident the commission will conclude that this acquisition is good for competition and we'll be working closely and cooperatively with them as they continue their review," a spokeswoman said via email.

In September, the U.S. Department of Justice also asked Google for more information about the potential ramifications of the deal.

Google announced its plan to acquire Motorola Mobility in August, with Google CEO Larry Page saying the company aims to "better protect Android from anti-competitive threats from Microsoft, Apple and other companies."

The deal raised questions about how other mobile phone manufacturers such as HTC and Samsung, which ship the majority of Android-based smartphones, would react. So far, Samsung has announced it will back Tizen, a new Linux-based OS based on MeeGo and Limo.

But the Android camp is stronger than ever with a 52.5 percent share of smartphones sold during the third quarter, according to Gartner.

Android's dominant position could raise concern among regulators, but Motorola's small European smartphone market share limits the potential impact, according to Mark Newman, chief research officer at market research company Informa Telecoms & Media.

Last month the deal won approval from Motorola Mobility's shareholders. About 99 percent of the shares voting at a special meeting voted in favor, which represented about 74 percent of Motorola's total outstanding shares of common stock as of Oct. 11, the company said at the time.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Apple, Department of Justice, EU, European Commission, Gartner, Google, HTC, Informa, Linux, MeeGo, Microsoft, Motorola, Newman, Samsung

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: business issues, european commission, Google, mergers and acquisitions, Motorola Mobility
Latest Blog Posts
Whitepapers
  • Managing IBM License Complexity
    IBM provides thousands of products in its portfolio and uses a variety of license models, contract terms and conditions. These license models can be very complex, causing frequent confusion for organisations trying to grasp the concepts while maintaining license compliance. While at first IBM licensing may seem incomprehensible, some education on the license models and licensing scenarios will help minimise the confusion. In addition, a more automated approach to managing licenses enables organisations to gain control, reduce ongoing software costs and minimise license liability risks. Read on.
    Learn more »
  • Revolutionizing Enterprise Storage Infrastructure with Enterprise Flash Technology
    Businesses increasingly rely on datacenters to provide access to services, applications, and data. As demand rises and applications grow in complexity, datacenter infrastructure must provide tremendous capacity and rapid access to information in order to keep pace with business priorities. Read on.
    Learn more »
  • Seven Steps to Effective Data Governance
    Creating a framework to ensure the confidentiality, quality, and integrity of data – the core meaning of data governance – is essential to meet both internal and external requirements, such as financial reporting, regulatory compliance, and privacy policies. At its best, data governance roots out risk – both business and compliance risk – by increasing oversight. This white paper provides seven steps for taking such an approach, concluding with a real world example, taking an incremental approach using a repeatable framework that is a practical, proven strategy that any size organization can implement to suit their immediate and long-term needs and budget.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.