China’s stance on the Google/Motorola merger: Implications for competition in intellectual property-intensive sectors
China’s merger enforcement agency approved the Google/Motorola merger with conditions.
This pattern of approval is not in full accordance with that in other jurisdictions,
including the United States and the European Union, which made unconditional approvals.
This contradiction attracted ample criticism; some critics believe that China’s policy is
designed to protect domestic industry. In investigating the Chinese merger agency’s decision
and the basis for its decision making, this article finds that much of the criticism is
groundless and misleading because the critics have failed to incorporate all elements of the
global value chain of mobile intelligent terminals into their analyses. The investigation also
shows that, although the decision makers are less experienced, their decisions are based
on Chinese competition law and market realities. It is important for international firms to
be aware of this pattern in merger analysis.