The two companies asked China to set conditions on the deal
Microsoft is still waiting to get regulatory approval for the Nokia takeover in some large countries across the world, and the company might have to wait a little bit longer in China due to some recent comments made by Google and Samsung officials.Representatives of the two companies are said to be discussing with the Chinese governments over their concerns that a potential deal between Nokia and Microsoft could lead to higher patent license fees, a report by Bloomberg reveals today.
It turns out that officials have already contacted China’s Ministry of Commerce and asked for conditions on the deal to make sure that patents that remain with Nokia won’t be sold at a higher price, while Microsoft won’t abuse on the technologies it’s going to take over from the Finnish mobile phone maker.
The $7.54 billion (€5.44 billion) deal between Microsoft and Nokia was announced in September 2013 and involves the hardware unit of the Finnish mobile phone maker, but most of the patents will remain with the company.
The EU cleared the deal in late December and the Chinese government is expected to do the same in the coming weeks, despite the concerns of Google, Samsung, and other local manufacturers.
“We look forward to the date when our partners at Nokia will become members of the Microsoft family, and are pleased that the European Commission has cleared the deal without conditions,” the software giant said back in December when the EU approved the deal.
Nokia is playing a key role in Microsoft’s mobile strategy, especially as the latter company continues the transition to a devices and services firm through its One Microsoft transformation plan launched by former CEO Steve Ballmer.
“We are excited and honored to be bringing Nokia’s incredible people, technologies and assets into our Microsoft family. Given our long partnership with Nokia and the many key Nokia leaders that are joining Microsoft, we anticipate a smooth transition and great execution,” Ballmer said in September when Microsoft officially announced the Nokia takeover.
As part of the deal, former Nokia boss Stephen Elop is also joining Microsoft, with a recent report revealing that he’ll take over the Xbox division and will be in charge of all hardware products developed by the software giant, including the Surface tablet. Julie-Larson Green, who was until now in charge of the same unit, will become the new chief experience officer (CXO) of the Applications and Services Group.