Jurisdiction - India
News
India – CCI Clears Acquisition Of Nokia’s Mobile Handset Business By Microsoft.

4 December, 2013

 

 

On October 24, 2013, CCI cleared the proposed acquisition of the Device & Service (‘D&S’) business of Nokia Corporation (‘Nokia’) by Microsoft Corporation and Microsoft International (collectively, ‘Microsoft’).


As per the Purchase Agreement between Nokia and Microsoft, Microsoft will acquire the D&S business of Nokia, including the mobile phones and smart devices business units, the industry design team, operations including D&S production facilities, D&S related sales and marketing activities, support functions, and design patents for the devices produced by the D&S business. Further, Nokia will grant Microsoft a ten year non-exclusive license to use its patents, as at the time of closing, with an option to extend the same to perpetuity. In return, Microsoft will grant Nokia reciprocal rights to use Microsoft patents in the services offered by HERE North America LLC (‘HERE’), a subsidiary of Nokia. Additionally, Microsoft will also become a strategic licensee of Nokia’s HERE platform through a four-year non-exclusive license to the HERE geospatial data and services.


Microsoft would also have a ten-year licensing arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 Operating System, while leaving Nokia to continue owning and maintaining the Nokia brand. 

 

CCI defined the relevant market as the ‘market for mobile handsets (including smartphones and tablets) and the business of operating systems used in such devices’.


CCI observed that only Nokia is present in the D&S business in relation to mobile handsets in India. Although Nokia and Microsoft are vertically integrated in the business of operating systems used in mobile/ smart phones, the market share of both parties is negligible. Finally, CCI also found that the relevant market already has a number of established players including Google and Apple.


In light of the above, CCI was of the view that the proposed acquisition was unlikely to have any Adverse Effect and approved the same under Section 31 of the Competition Act.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
[email protected]

 

Abhijit Joshi, AZB & Partners 
[email protected]


Shuva Mandal, AZB & Partners 

[email protected]

 

Samir Gandhi, AZB & Partners
[email protected]


Percy Billimoria, AZB & Partners 

[email protected]

 

Aditya Bhat, AZB & Partners 
[email protected]

Comments are closed.