Chinese competition authorities have given their nod to the Nokia-Microsoft deal, taking it one step closer to completion.
According to Reuters, Nokia actually kept its patents, even though it sold its flagship business. The deal had already received the green signal from European and US authorities. Such approvals were required given the magnitude of the deal and the presence of the two companies in markets across the world, according to Reuters.
To receive approval, both Nokia and Microsoft had to agree to various conditions set by the regulator.
According to Reuters, Nokia stated it had pledged to honor fair, reasonable and non-discriminatory (FRAND) patent licensing principles though there were no allegations of unfair practices against it.
According to NDTV, Google and Samsung had raised concerns over the deal affecting patent licensing fees since Nokia planned to keep its patent profile out of the deal.
Wall Street Journal pointed out that Microsoft had agreed to conditions that would last eight years.
"The conditions, which will last for eight years, require Microsoft to make its standard-essential patents--which are incorporated into broader technologies throughout the industry--available for licensing on so-called fair, reasonable, and nondiscriminatory terms. It also agreed to make nonexclusive licenses available for Android smartphones, which use software developed by Google Inc," according to the Wall Street Journal.
WSJ also reported Microsoft stated that it does not plan to change patent practices after the deal. Android relies on nearly 200 Microsoft patents.
The Chinese approval takes the deal one step closer to completion. WSJ also mentioned that the approval comes as relief to Nokia which is facing tax disputes in India. It is not known if the Finnish cell phone manufacturer will be able to transfer its Tamil Nadu factory to Microsoft as tax issues over phones produced in the factory have resulted in litigation with the tax department.
