Google’s break into the mobile phone market has hit like a meteor striking the Earth. With their purchase of Motorola Mobility at $12.5 billion, they are perched, ready to crush the competition, so they believe.
The Chinese government approved the deal, but with the stipulation that Android as an OS remain freely available to other device manufacturers for at least five more years.
This is Google’s largest acquisition so far and they are not holding back. They have already appointed a new management team for their new mobile phone division. This is truly a meteoric shot, since Motorola is the world’s largest smartphone manufacturer. Well, now Google is. You aren’t scared yet? You should be.
Google has stretched its dirty palms into phone and tablet manufacturing now, with the largest phone manufacturer in its clutches. This is the world’s largest search engine company, famous for raking all of your personal data, including email correspondence and putting together profiles no less daunting that what the CIA might have on you. Then they use it to target you with ads and pass the information to other companies, not without a profit of course. Still not scared? You would have to be dead not to feel a little fear now.
Larry Page, Google’s CEO, is turning into an evangelist for a new religion it seems. He thinks that what used to seem like magic is now what everyone does at the altar of technology. He believes that there are people who do so many things with their phones and tablets that they might never use a desktop machine in their lifetime. His zeal should throw up red flags for any semi-conscious person with a heartbeat.
He reminds us that Motorola produced the first mobile phone. Imagine what it looked like back then, though. There was no concern about elegance or design. It was a box with a speaker and receiver – ugly. Motorola has been in business for 80 plus years, but how much has their business sense really changed, especially if they are selling off part of the company to a minimalist designed company the likes of Google?
Now Google has horded all 17,000 patents in Motorola Mobility’s coffer. The Chinese authority, trying to keep the balance of power from shifting too quickly, stipulated that Google must keep Android free for five years. The European Commission had no concerns about Android. They did not believe Google might limit access to the OS only to Motorola, though they did request more information last January prior to ruling in February.
Motorola has been going for Microsoft’s jugular though. They have threatened a suit over MS’ use of H.264 video compression, which Motorola holds the patent on. This has even driven MS to relocate its European Software distribution center from Germany to the Netherlands. The risk of disruption for MS is far too large, though they have had the center in Germany for many years.
The U.S. regulators approved the deal without hesitation. Both the U.S. and the European Commission promised to monitor the use of the patents.
Related Links: BBC