Google Motorola Deal Put on Hold by European Commission

googorola-logoThe European Commission has put Google’s proposed $12.5 billion acquisition of Motorola Mobility on hold pending further investigation.

The EC issued a filing last month asking Google to provide additional details on how the acquisition will be carried out.

A filing on the EC web site said that a second notification was issued December 6, informing Google that the deadline for a decision on the deal will be suspended.

Google is seeking regulatory approval for its purchase of Motorola’s mobile hardware branch. Motorola shareholders have already signed off on the deal, which values the company at $40 per share.

The acquisition will provide Google with an in-house option for the development of Android hardware, although the company has since promised to operate Motorola as an independent brand.

The deal could also have implications for the mobile industry as a whole. With Google drawing closer to Android, experts have suggested that rival platforms such as Windows Phone or even BlackBerry could garner attention from mobile handset developers.

Additionally, some in the industry believe that intellectual property acquired in the deal could affect a number of legal challenges facing Android.

This article was originally published on V3.

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