Europe demands more info on Google's Motorola deal

[December 13, 2011]  SAN FRANCISCO (AP) -- European regulators have asked Google to provide more information about its proposed $12.5 billion acquisition of cell phone maker Motorola Mobility.

The request is the latest sign that regulators in Europe and the U.S. are taking a hard look at the deal to ensure it doesn't give Google Inc. the means to stifle competition in the increasingly important mobile computing and advertising market.

It's unclear whether the action will change the European Commission's timetable for issuing its decision on the proposed takeover of Motorola Mobility Holdings Inc.

Google described the commission's request as a routine part of the regulatory review. "We're confident the commission will conclude that this acquisition is good for competition and we'll be working closely and cooperatively with them as they continue their review," the company said in a Monday statement.

The U.S. Justice Department also is reviewing what would be the biggest acquisition in Google's 13-year history.

If regulators prevent the deal from being completed, Google would have to pay a $2.5 billion breakup fee to Motorola Mobility.

The scrutiny of the deal acquisition comes as antitrust regulators in U.S. and Europe conduct a broader inquiry into whether Google has been abusing its dominance in the Internet search market to throttle its rivals and drive up online advertising prices.

[Associated Press]

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