On the same day, Jha spoke out, saying thoughtfully that very publicly suing other brands of Android phones for infringing on Motorola's patent portfolio and proposed the possibility of cooperating with Microsoft rather than Google, adopting new Windows Phone software and dropping Android. The Google acquisition of MMI includes 17,000 existing and 7,500 pending patent portfolios. Photo: Robert Galbraith/Reuters. The European Commission and the US Department of Justice have reviewed Google's $12.5 billion (10.4bn) acquisition of Motorola Mobility (MMI), a US cell phone and set-top box manufacturer - a move that will open a new potentially explosive chapter in the struggle over smartphone patents. Google has repeatedly stated that it will run the MMI business at arm's length, which will disadvantage it compared to other mobile manufacturers using Android software. But analysts suspect that it will increasingly seek its subsidiary to showcase new versions of Android phones as it tries to enforce more compliance with the rapidly growing use of the software. Almunia's team has not ruled out an independent investigation into Google's behavior in Europe, where it is decided whether a full antitrust investigation should be installed regarding advertising and search practices. A decision is expected in March. The approval has left Google and Apple deadlocked, with Motorola subsidiaries attempting to squeeze into iPhone manufacturers paying a former iPhone chip supplier, chipmaker Qualcomm, which says it has been authorized by patents. The EU also issued similar warnings. Extending the review of the proposed merger, these two companies waved their hands in August, and the SEC announced on Monday night that it had decided that the deal would not affect the supply of Android software to other mobile manufacturers. However, EU Competition Commissioner Almunia warned that "the Commission will continue to closely monitor all market participants in this sector, especially concerning the increasing use of patent strategies." Google said it acquired MMI because its 17,000 existing and 7,500 pending patents cover a wide range of basic standards in wireless and mobile fields, as well as patents in other areas. This acquisition will allow Google to provide patent protection for device manufacturers using its Android mobile operating system, who are facing legal attacks from companies like Apple and Microsoft over patents. Apple is seeking to expand cases in Germany, where it is fighting Motorola's attempt to impose a ban on the sale and use of its iPhone 4S handsets and icloud web storage and synchronization services. If Apple can show that MMI has abused FRAND patents in this case, Joaquin Almunia, the EU competition commissioner, who warned in a speech last Friday, noted "owners of standard-essential patents are given power in the market that they must not be allowed to abuse." According to the acquisition agreement after the filing submitted by Motorola to the SEC, Google stated that it would be interested in purchasing the company - two weeks later, on July 20, the famous "corporate sniper" Carl Icahn, who then held about 11% of the company, said Sanjay Jha, CEO of MMI, that the company "should explore alternatives for MMI's patent portfolio." In other words, Icahn said: sell. (The day Icahn revealed this suggestion in the filing.) Apple filed a lawsuit in the US last week that could cause an explosion, claiming MMI is abusing its ownership of basic patents used in mobile phones after it wrote letters in January to Apple and chipmaker Qualcomm. In the letter, MMI revoked Apple's ability to use two patents embedded in the Qualcomm chips used in iPhones. This specific revocation generally would not be allowed under "essential" patent licensing terms: if Motorola is found to have violated "FRAND around its patent licensing rules" (fair, reasonable, and non-discriminatory), then it may face sanctions from standard-setting agencies and damages from Apple. In approving the acquisition, Almunia added that the decision "does not mean blessing all past or future actions of Motorola by Google," and considered any action on "[the] question, whether Motorola's or Google's behavior complies with EU antitrust law" separately. Microsoft has been forced to make almost all Android phone makers, such as Samsung and HTC, sign patent ownership deals, claiming royalties per unit. These deals cover 70% of Android phones sold in the US - it follows that, like China's Huawei, other Android phone makers are claimed by the software giant. Microsoft is also locked in a patent war with MMI. Its trick: At the end of the day, Google offered a price of $40 per share - enough to satisfy Jha and the MMI board. They squeezed Google into issuing $12.5 billion; Icahn's holdings increased in value to $7.5 billion when Google first approached MMI, rising to $1.34 billion upon completion of the deal. Icahn owes Jha a big favor - if, as some expect, the CEO pushes Arora aside once the merger is completed, Icahn might be in a position to repay him. [Small City Stock Market engages in enterprise website construction, website optimization, website promotion, overall marketing planning and implementation of enterprise e-commerce, and owns a well-known SEO team within the industry. With rich practical experience and high technical expertise, we offer you website SEO optimization services aimed at "marketing and conversion rate" to let clients see direct results. Business QQ consultation: 466401604, 8838478 Contact: 13422475786] But Jha held firm, and by August 7, Nikesh Arora, Google's chief negotiator - who is now the whistleblower from Jha in the post-merger company - asked him to provide a bid of $37. A week later, Google said it was considering buying the company at a "price high $20 or low $30s." On August 1, Google made its first formal bid of $30 per share - valued at $9.4 billion for MMI. MMI was spun off from Motorola in January 2011 but has struggled financially ever since, recording net losses each quarter, losing funding and market share in its mobile phone business. Despite generating around $3.4 billion in revenue each quarter, which is small for Google, expected to bring tax benefits amounting to no profitable net effect in the fourth quarter compared to $10 billion. But across one clear lens of Google's bow, the US Department of Justice said, accompanying its approval, while Apple and Microsoft had made explicit commitments regarding "standard essential patents" (SEPs) used in smartphones, Google's commitment statement was more ambiguous and did not directly confirm the same SEP licensing policy. For this reason, the DOJ will continue to monitor the market and "will not hesitate to take appropriate enforcement action to prevent any anti-competitive use of SEP rights." China must also do the same before the merger can be completed. How Motorola bid 33% higher, after Larry Page, Google's CEO, contacted Motorola Mobility last July following its loss of a series of patent bids at a bankrupt auction of Canadian telecommunications company Nortel Networks. It abandoned bidding with Intel, with bids from teams including Google, Apple, Microsoft, and BlackBerry maker RIM reaching $4.5 billion - but its Motorola bid would far exceed that. Almunia can fine companies up to 10% of their global turnover for abuse - among them, after the merger, reaching billions. Google's largest fine was $500 million levied by the US government last August for its role in illegally selling internet pharmaceuticals from Canadian sites to the US. Related thematic articles: Complete online marketing for your website To get the best free website promotion path How Apple cuts costs in building gadgets Creative website promotion - English and French online marketing How Apple cuts costs in building gadgets