China launching a second round of probes on the Nokia-Microsoft deal

The Nokia-Microsoft deal is marching steadily to a conclusion as being approved by the United States, the Eu, and of course, Nokia's shareholders. However, China is however reluctant to give its word. Recently China's Ministry of Commerce has started a second round of probes into Microsoft'due south acquisition case. This fourth dimension the government has a new emphasis: antitrust.

"Antitrust" is a knee jerk reaction -- something that pops up without involving real thought -- when it comes to business related to Microsoft. However, an antitrust probe is ridiculous in this detail case. According to statistics, Windows Phone maintains a very low market share (less than five%) in China, and Nokia is only a shadow of its erstwhile self in terms of brand appreciation. Even if Nokia comes into absolute domination (100% ownership, I hateful) within the Windows Phone ecosystem after the acquisition, the touch on on the Chinese smartphone industry volition be next to zero.

Rumors say that the Chinese government is now probing on behalf of local smartphone brands, most of whom take built their business entirely on low-to-medium range Android phones. These OEMs have been engaging in a heated ceremonious war against one another. The smartphone war, like many other business concern competitions in the country, ultimately boils down to a price war, cutting the turn a profit margin for anybody involved.

If Nokia "turns into a patent troll", every bit some accept been worrying about, a combined patent portfolio from Microsoft and Nokia could blow many Chinese brands into oblivion. But such a thing probably won't happen if you really think about information technology: Nokia will keep its own patents, merely licensing them to Microsoft through the selling of its mobile sectionalization. Thus there's no such thing as "combined portfolio" to speak of.

But anyhow, this might be a good take chances for the Chinese authorities, and Chinese smartphone brands, to remember again about their actions: If all participants in an manufacture are competing on such a low level, that everyone is making essentially the same thing, just differentiating from names, prices, and marketing gimmicks, is information technology worthwhile to go that far in society to protect information technology? And if a platform is not very legally sound (every bit Android has been triggering patent lawsuits globally in recent years), is it not wise to at to the lowest degree try out something sounder? By "something sounder" I don't even mean Windows Phone specifically. Chinese brands could invest in developing their own smartphone operating systems, similar HTC is doing, if rumors are to be trusted. Nowadays Chinese Android OEMs bashing one another on social media platforms with blunt specs or prices or both (as in "with the same price, you get about 300 MHz more from us") has go quite a tiresome scene. It'south nigh fourth dimension for some fresh elements in the game.

Anyway, we volition keep an centre on the developments of the probe, and keep y'all informed.

Source: WPDang

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