Competition Commission of India (CCI) has approved the proposed Microsoft-Nokia deal where Microsoft will acquire Nokia’s devices and services division for $7.2 billion. CCI has also cited the reason that this deal “is not likely to have appreciable adverse effect on competition in India.” Also Microsoft is not into mobile hardware business at all and Nokia has a very minimal market share, so this deal will not have any impact in the market in a negative way.
The Hindu reported the following comment from CCI,
According to CCI, it is generally observed that D&S business of mobile/smartphones and tablets, along with the business of operating system and other applications that are used in the devices, is extremely dynamic. This, in turn, makes the product life cycles of such devices very short, it added.
Further, the regulator said that it is the ecosystem in this business which drives the demand between the users, application developers, and designers/manufacturers.
CCI noted that the vertical relationship between Microsoft and Nokia is “relatively insignificant” after taking into consideration the minimal share of Microsoft as well as the presence of major players like Google and Apple in the business of the operating software used in the smartphones and tablets in India.
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