China’s Ministry of Commerce Continues Its Probe On Microsoft-Nokia Deal

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Microsoft-Nokia deal has already got most of the approvals in the countries where it is needed. US, EU and India are among them. China is one of the few nations that is yet to approve the deal. According to Global Times, there is a reason behind the delay. Usually, China’s Ministry of Commerce approves such deals after a 30-day first-phase of investigation. But this deal is now in the second-phase of anti-trust investigation, they fear that Nokia’s patent fees for the China’s domestic handset vendors might go up after this deal gets over.

The sources attributed the ministry’s careful moves mainly to requests from domestic mobile phone manufacturers, including ZTE, Lenovo and Xiaomi, who fear that upon the completion of the transaction, Nokia will charge them high patent fees for the usage of valuable technology on handsets.

In the past, Nokia adopted a loose system for patent protection in China and only charged a few of the country’s phone makers patent fees, but now it is likely to sign official patent licensing contracts with all domestic users or even charge them higher, according to The Economic Observer.

Currently, the company’s patent fees are generally 2 percent of a device’s selling price, said the report.

I hope the deal gets approved soon so that Microsoft will start the huge integration process within the company. They already got the plans in their hands, they need to execute it well.

What do you think?

Source: Global Times


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is a Computer Science and Engineering Graduate. He was also a Microsoft Student Partner. He is currently working in a leading IT company. Follow him at twitter.com/pradeepviswav and Facebook

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