The Microsoft-Nokia deal is well on its way and pretty much most regulatory bodies around the world have given it their blessing, along with Nokia’s shareholders as well, but it seems that there are still some who are a tad cautious about said deal, possibly over fears of monopolization, and over in China it looks as though they are exercising a great deal of caution over the approval of the deal. According to a report from Beijing-based newspaper, The Economic Observer, they are claiming that China’s Ministry of Commerce has yet to give the deal their blessing due to concerns from local vendors, such as ZTE, Lenovo, and Xiaomi who fear that this deal could mean higher royalty rates.
It seems that previously, Nokia had been pretty easy going regarding patent protection in China, and only a few vendors were charged patent fees for use of Nokia’s patents, but now with the deal, local vendors are worried that Microsoft/Nokia would use their power to hike up the prices. The Economic Observer even notes that it is possible that Nokia could generate an additional $1.1 billion in patent income from the Chinese market alone come 2014. We’re not sure what Nokia could do to appease the Chinese government, but for now this is one hurdle Microsoft and Nokia need to overcome for the deal to go through.