It has been reported that two investigations have been called for by the European Union's competition watchdog to gauge whether Motorola Mobility was breaching the rules by disallowing its rivals in getting patents.
The European Union's competition watchdog was forced to take the action after the complaints by Apple Inc. and Microsoft Corp. against Motorola Mobility. The two complained that Motorola Mobility was manipulating the market by using legal injunctions against its competitors.
The European Commission has informed that it would looking at the case closely to know "whether Motorola has abusively, and in contravention of commitments it gave to standard setting organizations, used certain of its standard essential patents to distort competition".
It has been informed that as per the European Commission, a company holding the patents which are necessary for the industrial standards should allow them to its rival without putting them at trouble. However, according to the rivals of Motorola Mobility, Motorola has breached the law.
Motorola Mobility is already in talks for its deal with Google. It has been informed that Google has applied for buying Motorola Mobility. It has come to light that Google has agreed to buy Motorola Mobility at a price of $12.5 billion. If the acquisition is allowed the n it would be one of the largest acquisitions.
However, Google have to wait for an approval of the regulators. It has been informed that if the merger is allowed then the fine imposed by the European Commission to the Motorola Mobility for breaching the law would be paid by Google.
Motorola Mobility is confident that during the investigations, it would be freed from the fabricated allegations. Motorola Mobility said that it is confident that the investigation will show that the company has always honored the rules of European Commission.
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