Microsoft and Nokia are ready to walk down the aisle and live happily ever after, but now Google and Samsung are having a few misgivings about the situation. Both companies have expressed concern over the implications of the upcoming merger of Nokia and Microsoft, citing patent power as the main issue.
Although Microsoft won't actually own or control Nokia's huge patent portfolio, its close relationship with Nokia will all but guarantee that Microsoft will have the power to leverage the power stored in those patents. Competitors like Google and Samsung are worried that Microsoft will use its sway over Nokia to drive up licensing fees and thus discourage competition in the mobile device market.
According to Bloomberg, Google and Samsung took their concerns to the Chinese Ministry of Commerce, asking the agency to make sure that Microsoft won't be able to manipulate the market and abuse Nokia's patents. Several other companies, including ZTE and Huawei have also asked that specific conditions be set on the deal in hopes of avoiding a Microsoft-Nokia patent monopoly.
The Chinese Ministry of Commerce is currently reviewing the Microsoft-Nokia deal for signs of a potential monopoly, but will, in all likelihood, approve the deal. Prior to arriving in China for scrutiny, the $7.5 billion deal also passed through the European Union during the end of last year. Although several manufacturers and tech companies expressed concern over the deal, it was approved by the European Union on Dec. 4, 2013. E.U. regulators stated that they would keep a close eye on Nokia and Microsoft following the deal's approval. Regulators said that they will take special notice of any abuse in terms of patent licensing by Nokia.
Even though it seems that the concerns of Google and Samsung will be overlooked yet again, the Microsoft-Nokia deal will definitely undergo a lot of scrutiny during its first year. At this point, it is impossible to gauge the potential impact of the merger on the mobile tech industry, but it will certainly change things up. However, now that Microsoft has allowed Nokia to produce smartphones with Android onboard and even recently announced that it will authorize the production of dual-boot Windows and Android-based smartphones, concerns that Microsoft wants to establish a monopoly in the mobile tech industry may have lost a great deal of credibility.
If anything, Microsoft seems to be embracing a more open outlook of late. It is also reportedly considering lessening or even eliminating licensing fees for Windows, a move that would alter everything we think we know about Microsoft.
