Google Must Be Vetted Before It Can Acquire Motorola

by Howard K. Smith on July 23, 2011

Google Logo with Motorola Icons Acquisition: Google / Motorola

Just as the giant software company, Google, is set to acquire Motorola in an acquisition deal worth $12.5 billion, the government has set in to closely monitor the process and hold up Google for scrutiny following existing allegations of employing dirty tricks to win vantage competitive position in a way that will set it at above all others in the market. And for this take over to actually sail through with Motorola, Google will have to prove to all government agencies and shareholders that it has never used any unfair method in its web search business to dominate the market to the disadvantage of other competitors; and that it has not lobbied or egged its android mobile system careers to use it for mobile smart phones.

While Google is quite confident that it has nothing to hide, and that it has not involved in any unfair market dealings to position itself where it is now, its chief legal adviser, David Drummond has stated that he is confident that the take-over would sail smooth as soon as the government is through with its scrutiny. According to the legal officer, he quite believes, “very strongly, it is a pro-competitive transaction” and it will be approved as soon as relevant agencies complete necessary investigations that would facilitate the deal.

If the multi-billion dollar deal falls through, it might make Google a major and dominant player in the software and hardware mobile sector, and this in itself poses some concern to federal regulators who fear that Google with the acquisition might become too powerful in dominating the market to the hurt of competitors and the people in general. So Google needs to be checked, at least to the point of ensuring that it has followed fair business policies so far, before the government can concede that the acquisition will only go through to the benefits of all and sundry.

But while federal regulators and other relevant security agencies are scrutinizing the processes that have helped Google so far, some analysts has opined that there is little anyone would do to stop the deal, because of certain factors that favor Google already. For instance, Google has committed that the android mobile system will remain as open source, and this commitment has slackened the hands of the government in dealing with the web search giant. Meanwhile, five of the largest mobile phone manufacturing companies who have been using the android system for their mobile smart phones have also given their assent to the touted Google-Motorola take-over bid.

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