Investing

Google Deal For Motorola May Face Challenge In China

Google’s gambit to get into the hardware business through a buyout of Motorola has been approved by regulators in Europe and the US. Not so in China, which could be a problem. Industry experts have faulted Google for the plan. They say that hardware margins are no where near those of the search business. And, Motorola is not a smartphone market share success. It runs well behind industry leaders Samsung and Apple. But, Google may be trying to mimic the Apple model in which one company controls consumer access to software and information and entertainment content through one hardware device.

Reuters reports

The Chinese Commerce Ministry is reviewing Google Inc’s $12.5 billion purchase of Motorola Mobility Holdings Inc, a ministry spokesman said on Thursday.

The ministry’s Anti-Monopoly Bureau is looking at the deal, spokesman Shen Danyang said at a regular press briefing. The Anti-Monopoly Bureau’s review is a routine part of the acquisition procedure.

Of course, these examinations are routine until they aren’t

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