China to take its time approving Googerola deal

China to take its time approving Googerola deal
An interesting report coming out of Reuters today: Chinese authorities may be in no hurry to follow in the footsteps of the EU Commission and the Department of Justice. Under Chinese law, the Anti-Monopoly Bureau has until March 20th to make a decision, and they may well take that entire time period before giving a green light.

Why the wait? Apparently it’s not because China has serious plans to scuttle the deal – Google’s acquisition of Motorola is unlikely to have a negative impact on Chinese businesses, and this is also a year when the Chinese government less likely to rock the boat without good reason, as the Communist Party will be introducing a new set of leaders at their congress this year.

Edward Yu, CEO of Beijing-based Analysys International, explains the mood in China this way, “This year is quite sensitive, with a new lineup of leaders in the central government, I don't think there will be anything extreme, warm or cold, or retaliation.”

Instead of wanting to scuttle the deal, China appears interested in using the regulatory permission process as leverage to encourage Google to move its search business back to mainland China. Google once ran their business there, but moved it to Hong Kong after several hacking attempts and a series of disagreements with the Chinese government over censorship of search results.

The end result may not be terribly onerous – Google is reported to be picking up the pace of hiring in China again, and a future expansion back onto the mainland might end up being a good thing for them. We imagine, though, that all things being equal Google would rather get approval for the Motorola deal sooner than later. This year it seems patience may have to be a virtue.

source: Reuters via Tech Crunch

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16 Comments

1. bloodline

Posts: 706; Member since: Dec 01, 2011

china gonna act china

2. thelegend6657 unregistered

i want facebook in china !

4. StreetNerd

Posts: 870; Member since: Dec 08, 2010

i want porn in china

3. clevername

Posts: 1436; Member since: Jul 11, 2008

Why do Google.and.moto need permission from the eu, us, and China?

5. jamrockjones

Posts: 345; Member since: Oct 26, 2011

No kidding.

6. Scott_H

Posts: 167; Member since: Oct 28, 2011

They are all anti-trust regulatory bodies. They ensure that a merger isn't going to screw over consumers and created a monopoly. If you want to be able to sell your stuff in large markets you have to follow their laws, and regulatory approval for larger mergers and acquisitions is one of those sets of laws.

9. clevername

Posts: 1436; Member since: Jul 11, 2008

OK, Thx. So if China doesn't approve, and I realize that's unlikely, can the merger still go through in the us and UK? And if so would moto act as a seperate entity in China or would that mean googlerola would not be able to operate at all in China?

13. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Worst case if Google went ahead with acquisition of Moto in the face of opposition from China, Moto products couldn't be sold in China. There might be a requirement for some corporate gymnastics to separate the Moto ownership such that Moto could not be construed to be owned by Google. Better to wait until March 20 deadline and see what the decision from China is.

15. clevername

Posts: 1436; Member since: Jul 11, 2008

Ah thanks.

7. tluv00

Posts: 134; Member since: Oct 18, 2007

Actually it's China taking it's time to spite Google.

8. tluv00

Posts: 134; Member since: Oct 18, 2007

Herro. Googre. It's China. You think this is going to pass? In the words of Marko from the movie Taken. "Good Ruck."

10. EclipseGSX

Posts: 1777; Member since: Oct 18, 2011

Herro, wercome to s**tty Wok may I take-a order pree?

11. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

From a country where everything can be and is counterfeited I can't see how Anti-Trust would be at issue. I applaud all the fabrication of goods that goes on there and I applaud the little Chinese lady on the corner of Canal Street and Bowery (here in NYC) who sells everything at a discount. Forever dynastic China!!

12. Jphones

Posts: 258; Member since: Feb 10, 2012

China just being jerks messing and taking there sweet time with Thessalonians isn't leverage to get a company back in your country its actually the opposite. Google could also take their sweet time before they open back operations in China. Come on China your supposed to be filled with smart people you do have a the most people in your country not all of them have jobs. so stop playin around. We want more stock android devices dam it

14. Jphones

Posts: 258; Member since: Feb 10, 2012

Ha my bad don't even know what that T word is. Dam big fingers ment to say merger.

16. tward291

Posts: 559; Member since: Feb 14, 2012

looks like china is pissing off apple and google lol

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