Google’s proposed $12.5 billion acquisition of Motorola Mobility is expected to be approved on Monday by European regulators and U.S. antitrust authorities, Reuters reports. The deal, which was announced last August, is seen in the industry as a move for Google to boost its patent portfolio, which the search giant promised won’t affect how it licenses out patent standards.
If it the deal is approved by European and U.S. regulators, it would still be on the chopping block as Google needs additional approval in China as well. Chinese regulators have until March 20 to make a decision – they can either approve or begin a third review phase. In addition, regulators in Israel and Taiwan need to sign off on the deal.
Once the acquisition is pushed through, Google will be in possession of Motorola’s 17,000 patents and 7,500 patents pending. This would surely give the Mountain View-based company more muscle in its competition with rivals such as Apple. Patent wars have become a hotly debated topic in the technology universe, even prompting the Commission to open an investigation for a Samsung claim against Apple, and whether or not legal tactics used by the Korean company breach EU antitrust rules, Reuters said.
Google revealed that fees for licensing out its soon to be patent technology would cap at 2.25 percent of the net selling price for each phone.
While the deal is expected to go through, the European Commission may decide to open an in-depth investigation rather than clearing it, but a source said that scenario is highly unlikely. The process still has a ways to go, but it certainly sounds as though Google is knocking down another obstacle in its journey to capture Motorola Mobility. What, then, will come of this acquisition remains to be seen.