Google has apparently come to an agreement with China in the approval of their acquisition of Motorola, according to various reports. In order to gain China’s approval for the deal to go ahead, Google had to agree to keep Android open and free for at least the next five years.
The apparent reason behind this requirement from China to approve the Motorola takeover was to ensure that Motorola would not get preferential treatment over Android when compared to other Android handset manufacturers. This stipulation is crucial as it aims to maintain a level playing field in the competitive smartphone market, ensuring that all manufacturers have equal access to the Android operating system.
The Open Handset Alliance and Android’s Origins
Google doesn’t actually own Android; it was created by the Open Handset Alliance, a consortium of technology companies. While Google is the biggest contributor to the project, this doesn’t give them the right to close off Android to other manufacturers. The Open Handset Alliance was established with the goal of advancing open standards for mobile devices, and Android was developed as an open-source platform to foster innovation and competition in the mobile industry.
By keeping Android open and free, Google ensures that a wide range of manufacturers can use and modify the operating system to suit their devices. This openness has been a significant factor in Android’s widespread adoption and success, making it the most popular mobile operating system in the world.
Implications of the Agreement
The agreement with China has several implications for the future of Android and the smartphone market. Firstly, it reassures other Android handset manufacturers that they will continue to have equal access to the Android platform, preventing any potential monopolistic practices by Google. This is particularly important for companies like Samsung, HTC, and LG, which rely heavily on Android for their devices.
Secondly, the agreement highlights the importance of regulatory approval in large corporate acquisitions. By agreeing to China’s terms, Google demonstrates its commitment to maintaining an open and competitive market. This move could also set a precedent for future acquisitions in the tech industry, where regulatory bodies may impose similar conditions to ensure fair competition.
Additionally, this agreement could influence Google’s strategy in managing its relationship with Motorola. While Motorola will benefit from being part of Google, the company will still need to compete on an equal footing with other Android manufacturers. This could drive Motorola to innovate and improve its products to stand out in the crowded market.
Google has yet to finalize the takeover of Motorola, although they have said that “we are pleased that the deal has received approval in all jurisdictions and we expect to close early next week.” This statement indicates that Google is on track to complete the acquisition soon, which could have significant implications for the future of both companies.
The agreement between Google and China to keep Android open and free for at least the next five years is a crucial development in the tech industry. It ensures fair competition among Android handset manufacturers and highlights the importance of regulatory approval in large corporate acquisitions. As Google finalizes its takeover of Motorola, the industry will be watching closely to see how this agreement shapes the future of Android and the smartphone market.
Source The Verge
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