Over at Google's Public Policy Blog (yes, that really exists) today, Senior VP Dennis Woodside issued a statement that the U.S. Department of Justice was taking a "second look" at certain potential antitrust issues in the Google-Motorola deal. What's it mean?
A $12.5 billion acquisition of a major US company that has been independent for over 30 years is always going to invite scrutiny from Uncle Sam, and let's face it, it's probably not a bad sign that the government is batting a second eye at these kinds of purchases.
Google, according to the post as shown below, remains confident that the deal will go through, and is cooperating fully with the DoJ during this evaluation, one Google has undergone before. While it is possible the DoJ may find an antitrust issue it did not discover previously, there hasn't been a huge outcry from the industry or consumers on what has been a heavily publicized merger - and that's a very good sign for Google.
Here's the statement:
Since we announced our plans to acquire Motorola Mobility, we've been excited about thepositive reaction to the proposed deal -- particularly from our partners who have told us that they're enthusiastic about our defense of the Android ecosystem.
And as David Drummond said when we announced our plans in August, we're confident that this deal will be approved. We believe very strongly this is a pro-competitive transaction that is good for Motorola Mobility, good for consumers, and good for our partners.
That said, we know that close scrutiny is part of the process and we've been talking to the U.S. Department of Justice over the past few weeks. Today we received what is called a "second request," which means that the DOJ is asking for more information so that they can continue to review the deal. (This is pretty routine; we’ve gotten these kind of requests before.)
While this means we won't be closing right away, we're confident that the DOJ will conclude that the rapidly growing mobile ecosystem will remain highly competitive after this deal closes. We'll be working closely and cooperatively with them as they continue their review.