A Logical Step

It is a logical step for the Internet giant: Google is ensuring itself access to important patents by buying Motorola Mobility. But in reality, the takeover might be for some other long-term reason.

Around $12.5 billion: That is the huge sum of money that Google’s Chief Executive Officer Larry Page has invested in the division of Motorola. After all, the step is logical for the Internet giant. Through the purchase, Google is ensuring itself access to important patents, which, as an inexperienced company in the cell phone business, it still does not have. In the patent war against Apple and others, Motorola and Google are stronger together.

But in reality, the takeover might be for some other long-term reason. Until now, Google has “only” controlled Android, the number one smartphone operating system. The devices themselves are manufactured by vendors such as HTC. By watching Apple, Page has learned how markets can be even better controlled with a successful blend of hardware and software. Whoever controls the smartphones, tablets and the appropriate operating system can better market contents, apps and advertisements — and incidentally, create more accurate user profiles of their customers — the most important currency of the industry.

You should not allow yourself to get carried away with naive illusions: Even if Page claims differently, access to Motorola’s cellular phones could spark Google’s next step. For consumers who value their privacy, that is not good news. We can still hope that the competition watchdogs keep a close eye on the deal.