The Chinese Ministry of Commerce imposes conditions on a merger transaction in the smartphone sector (Google / Motorola Mobility)

The notification for Google‘s acquisition of Motorola Mobility was submitted to China’s Ministry of Commerce on 30 September 2011. It was ultimately accepted on 21 November 2011 by MOFCOM after supplementation. At the expiration of the Phase III, or extended Phase II, period, on 19 May 2012, MOFCOM issued its decision granting conditional approval of the transaction. MOFCOM took a prophylactic approach to the Motorola Mobility patent portfolio. It also imposed conditions on Google‘s Android platform, reflecting concern over vertical integration and perhaps particularly domestic downstream competitors. The net result and key goal of MOFCOM’s decision may be to ensure access to Google technology for Chinese handset makers, protecting a significant domestic industry. The decision may also